Erick Thohir Laments Import Dependency; Encourages SOEs to Invest Abroad

TEMPO.CO, Jakarta - State-owned Enterprises Minister Erick Thohir in an economic event on Wednesday, Sept. 7, called for SOEs to boost overseas investments as a large number of animal husbandry derivatives such as milk is still dependent on imports. 

“We must fix our supply chain issue. We should not invest just for the sake of it, but it must be part of the supply chain,” said the minister at the 100 Indonesian Economists Gathering in Jakarta on September 7.

Erick emphasized that SOE investments abroad should aim to improve supply chains and pointed out the investment in the livestock sector, which is very much needed. The majority of beef in Indonesia, said the Minister, is still import-supplied as well as 80 percent of dairy products.

"We import 80 percent of our milk, how can Indonesian children grow better," said Erick.

Despite the high risk in overseas investments, Erick assured the participants of the gathering that SOEs investments abroad are not always detrimental. He pointed out companies owned by the Chinese government, which are now investing heavily in the automotive sector and are now able to build a high-tech automotive industry.

"China buys a lot of car companies abroad whose technology is now in China, even better than the companies they bought initially," said Erick Thohir.

ARRIJAL RACHMAN

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