Govt eyes Japanese business to transfer to Indonesia amidst slowing investment

The federal government intends to draw Japanese business into transferring to Indonesia, as it launched on Wednesday an incorporated data platform to stimulate investment and economic relations between the 2 countries as the health crisis affects the economy.

The incorporated data platform, dubbed Japan-Indonesia Partnership Lounge (JAIPONG), is set to offer info on financial cooperation opportunities between Japan and Indonesia, as well as promote financial investment environment in the country as part of the country’s efforts to restore an economy damaged by the pandemic.

As more companies prepare movings to Indonesia, only a few hail from Japan, Deputy Foreign Minister Mahendra Siregar said on Wednesday, requiring the two nations to enhance cooperation in a quote to advance economic relations.

” It is not enough as we have 60- year strong [diplomatic] relations,” he informed an Indonesia-Japan business forum.

Previously in June, President Joko “Jokowi” Widodo announced seven foreign business had actually validated strategies to move production centers to Indonesia, mainly from China, including South Korean industrial corporation LG and Japanese electronics huge Panasonic. The movings are approximated to bring financial investment of US$850 million to the nation and potential employment for 30,000 employees.

Indonesia’s foreign direct financial investment (FDI) fell 8.1 percent year-on-year (yoy) in between January and June to Rp 195.6 trillion ($132 billion), from the same period in 2015, as the COVID-19 pandemic hit the worldwide economy, according to Investment Coordinating Board (BKPM) information.

Meanwhile, FDI originating from Japan also dipped 48.5 percent to $1.21 billion as of June this year, from $2.35 billion in the exact same period last year, BKPM information likewise revealed.

Read likewise: FDI decreases for second consecutive quarter

On the other hand, Mahendra stated the recently passed Task Production Law would likewise make the financial investment environment more organization friendly and need to satisfy Japanese companies.

Your House of Representatives passed last week the jobs law to improve financial investment and financial growth. It has actually given that stimulated widespread demonstrations, with critics of the law saying it undermines labor rights and deteriorates environmental managements.

” The primary goal of the Job Production Law is to cut bureaucratic bureaucracy to address inefficiency and corruption that often impedes financial investment,” he went on to state. “We hope Japanese financiers and businesspeople make the most of this favorable development.”

On The Other Hand, Trade Minister Agus Suparmanto said the ministry would continue to support trade activity through digital platforms such as JAIPONG.

” We are positive that imaginative procedures through digital technology might contribute to improving Indonesian exports,” Minister Agus said in a video message.

Japan is Indonesia’s fourth-main export destination with $8.32 billion worth of non-oil and gas items shipped from January to August this year, according to Data Indonesia, a decrease of 9.06 percent yoy from the exact same duration in 2015.

Meanwhile, Indonesia imported $7.31 billion worth of non-oil and gas goods from Japan in the same period.

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