TEMPO.CO, Jakarta-Investment Coordinating Agency (BKPM) head Franky Sibarani on Friday, June 17, 2016 disseminated regulations and promoted investment potentials in Indonesia to 10 companies in Shanghai, China.

The regulations, Franky said, include Presidential Regulation No. 44/2016 on the pharmacy sector. “The regulation on the pharmacy sector is more open for investors,” he said in a press release.

Franky added that Indonesia has now allowed 100 percent ownership of the raw materials industry for foreign investors. Therefore, relaxing the regulation is expected to attract more investors to Indonesia.

He revealed that the meeting with the Shanghai-based companies was very strategic, since Shanghai serves as the business center in China. “We are going to meet large-scale companies. The investment value is quite significant,” Franky said.

One of the companies is a China-based power company that has formed a joint venture with PT Pembangkit Jawa Bali to develop a power plant with a capacity of 2 x 1,000 MW. The company has also firmed a joint venture with a domestic private company to build a power plant with a capacity of 2 x 300 MW.

The total investment worth reached US$2.7 billion, Franky said. “Both projects are important to support the 35,000 MW electricity project,” he added.

Franky’s work visit was a part of the roadshow promoting investments in Indonesia to 10 provinces in China, a country that has been one of Indonesia’s major investors. As much as US$2.6 billion worth of investments have been realized in Indonesia since 2010, particularly in infrastructure, metal industry, machinery, and electronics industries.

Since 2010, China has committed a total investment of US$52.3 billion in Indonesia. Data from the BKPM revealed that China had realized US$464 million worth of investment consisting of 339 projects and absorbing 10,167 workers. China is the fourth largest investor in Indonesia after Singapore, Japan and Hong Kong.

BAGUS PRASETIYO