Taiwan Businesses Eyeing Indonesia`s Logistics Sector

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  • Tanjung Priok port. TEMPO/Tony Hartawan

    Tanjung Priok port. TEMPO/Tony Hartawan

    TEMPO.CO, Jakarta - Taiwan businesses are eyeing Indonesia’s infrastructure and logistics sector. “They are interested to invest US$3.3 billion for infrastructure in ASEAN countries, particularly Indonesia,” Director of Economic Division of The Taipei Economic and Trade Office (TETO) Jakarta, Jack Chen-huan said yesterday.

    Jack, however, did not specify the amount of money to be invested in Indonesia. “It’s still being discussed with the Indonesian government.”

    He said that Taiwan investors are challenged to address logistic issues in Indonesia. “The characteristics of the logistic sector are different in the two nations. In Taiwan, you can get goods in less than a day. Here, you can’t do it because there are thousands of islands.”

    Taiwan investors’ commitment is in line with the government’s Medium Term Development Plan (RPJMN) that includes infrastructure development focusing on logistics and energy. The government is currently developing 24 new ports, 15 airports, urban transport—both bus rapid transit (BRT) and mass rapid transit (MRT), as well as the construction of 2,650 km long new roads and 1,000 km toll roads.

    Jack said that aside from infrastructure, Taiwan businesses are also interested to invest in electricity projects and industrial zone development.

    Earlier, the Investment Coordinating Board (BKPM) had identified investment interest from Taiwan amounting to US$4 billion or Rp41.7 trillion in petrochemical, steel, and shipbuilding. In the third quarter this year, Taiwan businesses invested US$41.3 million in 99 projects.

    Throughout January to April 2017, Indonesia’s trade performance with Taiwan improved with the total exports inched up 18.62 percent and non-oil and gas export at 1.33 percent.