Consumer-focused companies from Ikea to European automakers are putting money into Indonesia to target the country's young population.
Investment in the country will grow at least 15% this year, a slower pace than last year's 27%, but a more sustainable level, Mahendra Siregar, chairman of the Indonesia Investment Coordinating Board, said in Jakarta on Wednesday. Investment growth has been faster in recent years only as it came from a lower base, with the main challenges being a lack of infrastructure and the need to improve the ease of doing business, he said.
The Indonesian government is seeking foreign investment to support growth in Southeast Asia's largest economy, which slowed to its weakest in four years in 2013, and help narrow a current-account deficit. Elections for a new president in July are spurring consumer confidence, leading to greater investor interest in the world's fourth-largest population, Mr Siregar said.
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