The BKPM’s Chairman is Optimistic that Chinese Investment will Continue to Increase

Chairman of Indonesia Investment Coordinating Board (BKPM) Bahlil Lahadalia attended the China Business Forum: Enhancing the Power of Indonesia Capital at the Indonesia Stock Exchange, Jakarta (8/1). This forum was organized by the Indonesia Stock Exchange together with Indonesia China Chamber of Commerce (INACHAM). Through this business forum, the existing Chinese companies are expected to support the development of capital markets in Indonesia.

Bahlil hopes that Chinese investors who have conducted their business activities in Indonesia can participate in the capital market in Indonesia. “With the listing of Chinese companies in Indonesia indicates that the relationship between Indonesia and China is getting better “, Bahlil said.

As we know, one of President Jokowi’s focuses is on economic transformation through investment. Bahlil is optimistic that economic growth in 2020 will be much better. “I am sure that investment growth in the future will continue to increase, including Chinese investment in Indonesia,” Bahlil added.

Over the past 5 years (2014-Q3 2019), Chinese is the 3rd largest source of investment in Indonesia, after Singapore and Japan, with a total investment realization of US$ 13.1 billion. “But what is important and what we need is the investment can collaborate with the local entrepreneurs. So every investment is now directed to job creation. You may invest in Indonesia but you have to maximize the use of local labor. There must be a principle of togetherness and mutual benefit between both parties,” Bahlil stressed during a doorstop with the media.

The licensing process is still a barrier to investment in Indonesia. Therefore, President Jokowi directly instructs BKPM to coordinate the acceleration of licensing, so that it can provide a positive investment climate. “BKPM always ensures that under the current administration, we will facilitate licensing and provide certainty as well as incentives for investors,” Bahlil said.

When being asked about the effect of the problem of Natuna toward Chinese investment in Indonesia, Bahlil emphasized that Natuna with investment is a different matter. “If there is any violation in Natuna, let the law enforcement officer works to solve it. While BKPM must convince Chinese investors that the investment climate in Indonesia has been changed and will be getting better”, Bahlil told media partners.