The realization of foreign direct investment to Indonesia plunged by 45.91 percent to 4.69 billion US dollars in 11 months ending November of the year compared with the corresponding period last year.

Over the period, the materialized domestic investment also fell sharply 37.14 percent to 16.9 trillion rupiah (1.8 billion U.S. dollars), according to a report by the Investment Coordinating Board (BKPM) reaching here Wednesday.

In a hearing with a parliament commission overseeing investment issues Tuesday evening, BKPM head Muhammad Lutfi said the combination of fuel price rises, gas shortage and the lack of electricity supplies had discouraged investments.

He warned that investment from Japan had plummeted by 61.13 percent to 430.2 million dollars due to bureaucratic red tape, taxation problems, poor infrastructure, labor conflicts and unpredictable judiciary system in Indonesia.

Source: Xinhua