Jakarta – Approved foreign direct investment in value terms in Indonesia fell 34.4% during the first half of the year to U$3.05 billion from $4.65 billion a year ago, the official investment board said Wednesday.

The board didn't provide any reason for the drop. Analysts said direct foreign investors remain reluctant to put their money in Indonesia mainly on lack of efforts by the government to reform its corrupt judicial system.

They added that subdued foreign direct investment will likely continue to keep Indonesia trapped in a low economic growth path of below 5%.

The board said that the value of approved investment planned by local investors, however, rose 52% during the same period to Rp15.77 trillion from Rp10.36 trillion a year earlier.