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Japan Commits to Invest in Indonesia up to Rp85 Trillion

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By : Savira Ayu, Investment and Industry Observer

A big commitment has been said by the Japanese in order to invest in Indonesia even up to Rp 85 trillion. This made the working visit of President Jokowi again successful.

The working visits that have been carried out by the President of the Republic of Indonesia (RI), Joko Widodo to China, Japan and also South Korea have indeed continued to produce very positive results for the country’s economy and also for the benefit of both countries.

Previously, in a press statement quoted from the Ministry of Foreign Affairs (Kemlu) website, Minister Retno Marsudi stated that the background of the visit was because the three countries were indeed very strategic partners for Indonesia, especially in the economic field. Not only that, but the Foreign Minister also added that the three are also strategic partners for ASEAN as well.

Furthermore, Minister Retno also explained that there was a focus on President Jokowi’s working visit, namely in the context of strengthening economic cooperation, especially in the realm of trade and investment. During the visit, the seventh President of the Republic of Indonesia will directly meet with state leaders to discuss further bilateral steps and strategies, including holding direct meetings with business circles.

After it was reported that the visit in China had resulted in a commitment from the Bamboo Curtain country to strengthen trade in the CPO sector and would also prioritize imports from the agricultural sector from Indonesia, it turns out that President Jokowi’s working visit to Japan has also paid off.

The result is related to the commitment of the Sakura Country to invest in their company. The investment specifically is an investment commitment of up to 5.7 billion US dollars or if converted into around Rp 85 trillion from ten Japanese companies.

No half-hearted, even some of the big companies from the Sakura country also invested, starting from Toyota, Mitsubishi, Sharp, Sojitz, Denso to Inpex. The commitment they gave was expressed directly when President Jokowi came to the forum of The Japan CEO Meeting 2022.

In order to accept and welcome the good investment commitment from Japan, the President of the Republic of Indonesia then also conveyed his commitment that he would continue to create a very conducive and friendly business climate for business actors. Actually, this effort is also currently continuing with the ratification of Law Number 11 of 2020 concerning Job Creation.

In a press release issued by the Investment Coordinating Board (BKPM), President Jokowi hopes that Japan will be more active in increasing its investment in Indonesia. How not, because if investment continues to be increased, many parties will benefit from national companies and even MSMEs so that they will definitely be able to move the wheels of the nation’s economy.

Therefore, President Jokowi immediately assigned the Minister of Investment to carry out good supervision starting from investment plans, whether new investments and also expansion or expansion actions. Regarding the direct directions that have been mandated by the President, the Minister of Investment of the Republic of Indonesia Bahlil Lahadalia emphasized that he is very ready to carry out investment escorts as in the directives, especially investments from Japan.

Not only that, but Minister Bahlil also hopes that the investment made by the company from the Sakura Country can actually run smoothly and be able to go hand in hand with companies in Indonesia in harmony so that there will be profits that can benefit all parties.

The Minister of Investment also expressed his high appreciation for the presence of CEOs and leaders of large companies in Japan and their commitment to investing in the country. It turns out that the investment to be made is projected to have a very positive impact on the resilience of the economy in the future, because currently the world economy is hit by the threat of inflation and recession that continues to haunt, so strong resilience is really needed to deal with all kinds of threats, especially in supply chain resilience for all communities in both countries.

Meanwhile, the Ministry of Investment / BKPM provided a note regarding the realization of investment that has so far been made by Japan to Indonesia, namely only in 2017 until the first half of 2022 it has reached 20.86 billion US dollars and made Japan the second ranked country. largest in terms of investment in the archipelago.

It should be noted that the investment made by Japan is mostly dominated by the electricity, water and gas sectors with a total amount of up to 7.48 billion US dollars, followed by the motor vehicle sector and transportation equipment with a value of 3.59 billion US dollars and in the transportation sector. housing, industrial estates and offices with a value of up to 2.44 billion US Dollars.

With all efforts to create a healthy economic climate and also support investors, it is no wonder that large companies in Japan immediately gave their commitment to invest in Indonesia, even reaching Rp. 85 trillion.

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