BPKM Says Investment in Indonesia Hindered by Deglobalization
TEMPO.CO, Jakarta - Deputy Minister for Investment Promotion at Indonesia Investment Coordinating Board mentioned that Indonesia faced several challenges in attracting investment, including the deglobalization issue.
"Countries that used to promote globalization are now promoting deglobalization. These countries tend to invite local investors back to [invest] in their own country," Nurul said during UOB Editor's Circle at Kempinski Hotel in Jakarta yesterday, September 12. Nurul named the US and the UK as examples of countries promoting investment deglobalization.
However, Nurul believed that Indonesia still has a competitive superiority that will be able to attract foreign investors to the country, especially concerning natural resources. "If we're talking about electric vehicles, for example, any country would want to [invest] in Indonesia," he added. As one of the biggest nickel reserves in the world, Indonesia has a competitive superiority compared to other countries.
Indonesia also has a competitive superiority in the digital economy, especially in Southeast Asia. "I believe Indonesia's competitive superiority in the digital economy sector will remain strong," said Sam Cheong Chwee, UOB Managing Director, during the same event.
Based on a survey conducted by UOB in Southeast Asian countries and China, Indonesia placed first on digital technology implementation in business, encompassing 93% of businesses in Indonesia with various degrees of implementation. Indonesia also placed first with a 90% success rate of digitalization in the business sector.
Thus, the UOB managing director said that he is optimistic that Indonesia will attract a wider pool of investment, including foreign direct investment.
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