Encourage Investment Acceleration, BKPM Focus on Economic Area Development

The Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal / BKPM) continues taking active steps to boost investment acceleration. One of them was by carrying out the event “Investment Market Sounding (IMS) 2018: Strategic Projects in Economic Zones”. This event was held in two cities in China namely Xiamen City, Fujian Province on 24-25 April 2018 and Beijing City on May 14-16, 2018.

Deputy for Investment Planning, Tamba P. Hutapea confirmed that the implementation of Market Sounding intends to achieve the target realization of 2018 investment of IDR 765 trillion and encourage economic growth, as well as government efforts in the framework of economic equality, expansion of job creation, and increase in national exports.

“IMS aimed at promoting various economic areas in the form of Special Economic Zones (SEZ) and Industrial Estate (IE) as strategic locations for investors who plan to invest in Indonesia, also promoting some potential strategic projects related to infrastructure development to uplift the economic area,” Tamba said in a press conference on Tuesday (15/5).

The first IMS in Xiamen City, Fujian, is held at Langham Place Hotel Xiamen. A number of stakeholders such as China Development Bank (CDB) Xiamen Branch and Xiamen Chamber of International Commerce (COIC) Committee also participated and provided support. The event was attended by 120 companies from various business sectors especially in the working area of KJRI Guangzhou. 4 (four) managers of Industrial Estate came and gave their testimonials namely Suryacipta City of Industry (SCI), China Fortune Land Development (CFLD), China Industrial Integrated Zone of China (KITIC), and Podomoro Industrial Park.

IMS Xiamen event was followed by benchmarking activities of economic development through site visit to Xiamen Area of China (Fujian) Free Trade Zone (XMFTZ), which acts as the gateway of China’s opening-up policy to the global world in the Belt and Road Initiative framework. XMFTZ is supported by excellent connectivity infrastructure (port, airport and land), equipped with integrated investment service (ISS), as well as other supporting facilities such as one-stop service platform for intelligent manufacturing of full industrial chain with a vision to develop the international standard business environment.

Consulate General of the Republic of Indonesia (KJRI) Guangzhou on this occasion said that IMS is an important effort to attract investors from all China and maintain good relations between the two countries. Meanwhile, in the keynote speech, BKPM conveyed several important issues such as the macro-economic condition and investment development in Indonesia, especially China’s investment performance which continuously improving. BKPM also delivered the policy updates as well as its efforts to reach faster investment development and evenness through the new growth centers (SEZ, IE, FTZ and Tourism Area).

The second IMS was held at Pan Pacific Hotel Beijing, China. Indonesian Ambassador to Beijing, RRT Djauhari Oratmangun in this event said that the current bilateral relations between Indonesia and China are getting closer and intensive. This started from the meeting of President of Indonesia Joko Widodo and President of China Xin Jiping in May 2017 in the implementation of Belt and Road Initiatives-Global Maritime Fulcrum (BRI-GMF) cooperation framework. “Currently there are three important pillars for the government: investment, trade and tourism, and China has become Indonesia’s strategic partner in all these pillars,” said Djauhari at the opening ceremony.

IMS Beijing was attended by around 64 potential Chinese investors with a total of 130 participants. Participants include some Chinese investors engaged in the manufacturing industry (among others: food industry, automotive industry and pharmaceutical industries), power plants, engineering consultants, area developers who become clients or partners of Bank of China (BOC). Some SEZs being offered were Sei Mangkei, CFLD New Industry City Development, Greenland International Industrial City/GIIC; Java Integrated Industrial and Port Estate/JIIPE; Modern Cikande Industrial Estate/MCIE; and Podomoro Industrial Park.

China became the IMS destination country because it is considered as a strategic partner with the total investment realization in Indonesia grew significantly in the last three years with total USD 6.65 billion, reaching the third largest position under Singapore and Japan. 64% of China’s investment fall under manufacturing sector and 68% are located outside Java. Thus, the characteristics of Chinese investment are in line with the Government’s intention to encourage the growth of industrialization and increase in exports. On the other hand it also supports the purpose of achieving a more equitable distribution of the economy.