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Appreciate the Relocation of Foreign Companies to Indonesia

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By: Dede Sulaiman)*

A total of 23 foreign companies will relocate their factories to Indonesia. The relocation plan is widely appreciated by the public because it shows that foreign investors trust Indonesia as a potential country to develop their business.

Investment is a familiar thing in Indonesia because it has existed since the New Order era. We are lucky because the Government has made regulations such as the Omnibus Law which has investment clusters, the aim is to facilitate investment in this country.

There are very positive results from the enactment of the Omnibus Law, namely more investors entering Indonesia. There are 23 large companies that have shifted their business from other Asian countries to Indonesia, and the investment value is no joke, amounting to 116 trillion rupiah. This was stated by Imam Soejoedi, Deputy for Investment Implementation Control.

The foreign companies came from the United States, China, South Korea, Hong Kong, Japan, and Germany. They relocated the factory because they saw that Indonesia had more potential, especially in terms of human resources. In addition, the rules that make it easier for foreign investment in the Omnibus Law are also an important consideration.

The relocation of various foreign companies to Indonesia should be appreciated, because the more people invest, the more foreign exchange there will be. This is very important because we need foreign exchange to overcome the impact of the pandemic, both in the health and economic fields. During the past two years, the government has indeed spent a very large amount of money on vaccinations, providing assistance to the people, etc.

When many foreign companies relocate their factories to Indonesia, it is very good because they can absorb workers. Predictably, there are more than 300,000 vacancies that can be filled. This is very good because it reduces the number of unemployed in this country. Especially when there are more unemployed people, so they can get new jobs.

The problem of unemployment cannot be taken lightly because the more unemployed, the more people will suffer, because they cannot meet their own needs. If there is no one to borrow money from, what will happen to them? Moreover, not all talented people become entrepreneurs, and are more suitable to be employees.

In addition to reducing unemployment, the relocation of foreign companies also spreads progress throughout Indonesia. The reason is that their investments are not only made in Java, but also other islands, even to Papua. They are interested because there are still abundant natural resources, and will create a joint venture company that is mutually beneficial.

These companies are willing to invest outside Java because the infrastructure there is already good, and that is indeed one of the requirements before entering Indonesia. This is the result of a national economic development project, which builds roads and other infrastructure, and is continued during the pandemic.

Investment is clearly very profitable because Indonesia does not issue 100% of capital, but is assisted by investors. That way, the business world will be more dynamic and the wheels of the economy will roll faster. We too can rise again after being hit by the pandemic for two years.

When there are many foreign companies relocating their factories to Indonesia, it will be very good because it increases the country’s foreign exchange. In addition, investment will reduce unemployment, because the factories need a lot of workers. The government should be commended for working hard to attract investors and overcome the impact of the global pandemic.

)* The author is a contributor to Pertiwi Institute

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