Jakarta (Antara Babel) - The Capital Investment Coordinating Board (BKPM) said investment by countries grouped in the Indian Ocean Rim Association (IORA) in Indonesia has increased 13.4 percent on the average in the past five years.
BKPM chief Thomas Trikasih Lembong said here on Monday the growing trend of investment in the 2012-2016 indicated expansion of South-South economic cooperation.
"So far generally investment fund flowed from rich countries to developing economies, but expansion of service and financial services have driven investment cooperation among developing countries," Thomas said.
BKPM has recorded a positive trend of investment by other IORA member countries in Indonesia.
In 2016, investment by other IORA countries accounted for 21.6 percent or US$11.67 billion of total foreign investment in Indonesia, up from US$9.5 billion in the previous year.
Five largest contributors to the IORA investment were Singapura, Malaysia, Mauiritius, Australia and Thailand, Thomas said.
"We expect IORA countries would increase investment cooperation among them to strengthen South-South economic cooperation," he said.
He said IORA became important with the growing participation of developing nations.
The 21 member countries of IORA will hold a summit meeting here on Tuesday preceded by senior official meeting on Sunday and foreign ministerial meeting on Monday.
The 21 member countries of IORA include Australia, Bangladesh, Comoros, India, Indonesia, Iran, Kenya, Madagascar, Malaysia, Mauritius, Mozambique, Oman, Seychelles, Singapore, Somalia, South Africa , Srilanka, Tanzania, Thailand, United Arab Emirates and Yemen.
Indonesia is the chairman for the period of 2015-2017.
IORA is the largest forum of cooperation in the Indian Ocean rim established in 1997, but it is for the first time the association plans to hold a summit meeting here after 20 years.
Trade between IORA member countries in 2015 was valued at US$777 billion or a 300 percent increase from US$233 billion in 1994.
The three-day IORA meeting uses the theme of "Strengthening Maritime Cooperation for Peaceful, Stable and Prosperous Indian Ocean" to start in Jakarta on March.
IORA has six dialog partners including the United States, China, Britain, Japan, Egypt and France.
