Head of the Indonesia Investment Coordinating Board (BKPM) Bahlil Lahadalia, said that 17 foreign investors will enter Indonesia. 17 foreign investors will enter Indonesia following the seven companies that have been confirmed to have relocated their companies with a total investment of Rp. 11.9 trillion.
For this reason, BKPM will continue to negotiate with various companies so that they are interested in relocating their business to Indonesia from China, Japan, Taiwan, Thailand, Malaysia and South Korea. In addition, there are 119 investors who are interested in entering Indonesia.
“One of the investors from South Korea is I-G Chemicals to build a vehicle battery industry integrated with a smelter, with an investment value of up to USD9.8 billion and able to absorb 14 thousand workers,” he explained.
Although this is considered good for the Indonesian economy, Core Indonesia Executive Director, Muhamad Faisal, hopes that the government will ensure the absorption of local working land amidst the increasing number of companies relocating their businesses.
“Especially with the Covid-19 pandemic, it has increasingly triggered companies to leave and look for other countries to invest profitably, targeting Southeast Asia and South Asia countries,” he said.
Faisal added, this is an opportunity to be used to attract large value investments specifically for manufacturing. Because it creates a large workforce and creates job opportunities. “Not only that, usually there are also multiplayer effects,” he added.
Reflecting on the opportunity to attract investment, Faisal said that Indonesia is actually still unable to compete with Vietnam, but as many investors have entered Vietnam, Faisal sees that investors are turning to other countries, including Indonesia.
For this reason, Faisal asked the government to take advantage of this moment to attract investors to Indonesia so that it could absorb a large number of workers.
For your information, the seven companies that are confirmed to relocate investment are PT CDS Asia from the United States with a solar-powered lighting industry. PT Sagami Indonesia, from Japan in the electronics component industry. PT Denso Indonesia from Japan in the automotive spare parts industry.
PT Panasonic Manufacturing Indonesia from Japan in the electronics industry. PT Meiloon Technology Indonesia from Taiwan is in the speaker / audio and video electronics industry. Then, PT Kenda Rubber Indonesia, from Taiwan in the tire industry, and PT LG Electronics Indonesia from South Korea with the electronics equipment industry. (*)
