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China to Become Largest Investor in Indonesia

Translator

Editor

5 September 2016 17:24 WIB

Heads of States arrives in Hangzhou for the G20 Summit opening event. REUTERS/Mark Schiefelbein/Pool

TEMPO.CO, Jakarta - Indonesian Chamber of Commerce and Industry (Kadin) chairman Rosan P. Roeslani said that China would be the largest investor in Indonesia in the following decade as reflected by the country's increasing investment realization.

"President Joko "Jokowi" Widodo's commitment to shorten the bureaucracy line and simplify the permit procedures has opened opportunities for Chinese investors. They are very enthusiastic in increasing their investments in Indonesia," Rosan said in Jakarta on Monday, September 5, 2016.

Last week, President Jokowi met hundreds of Chinese business owners at the Indonesia-China Buisness Forum held in Shanghai.

Rosan, who attended the meeting, revealed that President Jokowi convinced Chinese business owners that Indonesia would facilitate their investments by delivering the 3-Hour Investment Permit Service, the Green Line Service, the Direct Construction Investment Incentive (KLIK), and a more transparent investment regulation through the improvement of the Negative Investment List (DNI).

Attending the meeting, in addition to Rosan, were Coordinating Maritime Affairs Minister Luhut Binsar Panjaitan, Finance Minister Sri Mulyani Indrawati, Trade Minister Enggartiasto Lukito, Foreign Affairs Minister Retno Marsudi, Investment Coordinating Agency (BKPM) head Thomas Trikasih Lembong, and Cabinet Secretary Pramono Anung.

"We're still facing issues, particularly with language and partnership. But I believe that it will be addressed. One thing for sure is that Indonesia has become one of the most attractive investment destinations for China," Rosan added.

Based on data from the BKPM, Rosan revealed that China was the fourth largest investors in Indonesia after Singapore, Japan, and Hong Kong. China's investment realization in the third quarter of 2016 stood at US$549 million with 499 projects. Meanwhile, Singapore was at the top of the list with a total investment value of US$2 billion with 1,927 projects. Japan was at the second place with a total investment value of US$1.3 billion, followed by Hong Kong with US$597 million.

"China's investment increased significantly. The realization exceeded Malaysia’s with US$393 million and Netherland with US$346 million," Ronan explained.

Rosan appreciated President Jokowi's consistency in synergizing the fiscal, monetary, and structural reform policies for the sake of the national economy's improvement. Rosan said that the synergy would motivate growth in the real sectors, as well as boosting investments, productions, distributions, and consumptions.

"I believe that the government’s consistency to improve the economic growth would have wide impacts. Each economic policy must drive a solid and inclusive growth," Rosan added.

ANTARA



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