An expert has identified the Indonesian infrastructure sector as potentially lucrative for overseas investors.

According to chief investment officer of Singular Asset Management Teoh Kok, the need for quality infrastructure in the country could soon attract investors.

He told the Malaysian Star that the construction sector in the south-east Asian country is likely to be seen as a particularly interesting industry.

Mr Kok noted that the government in Indonesia allocated $7.5 billion to development of the sector in its 2009 budget.

An additional $703 million was set aside for labour-intensive infrastructure in the country.

The expert added that there were also opportunities for investors in the banking sector in Indonesia.

This comes after an analyst with an investment bank told the Malaysian Star that the time is right to enter the Indonesian financial sector.

She noted that Islamic banking in the country is relatively small, which could open up possibilities for Malaysian banks.