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Investment Accelerates National Economic Development

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By: Saiful Anwar )*

Investment has proven to bring many benefits to economic development in Indonesia, such as the absorption of a large number of workers. So this shows that investment commitments in Indonesia must be strictly maintained.

The Indonesian Chamber of Commerce and Industry’s China Committee (KIKT) is committed to encouraging business players in Indonesia and China to continue to synergize, as an effort to improve the welfare and prosperity of the two countries.

In addition, KIKT is also committed to working hand in hand with the government in opening the door for trade and investment cooperation between Indonesia and China, as well as ensuring investors can run their business and find the best partners. In addition, the committee also seeks to increase the value of Indonesia’s exports to China.

The chairman of the Indonesian Chamber of Commerce and Industry’s China Committee, Garibaldi Boy Thohir, said that most of China’s investment in Indonesia was in line with the current government’s priority, namely the development of the downstream industry in Indonesia, which is expected to maximize added value for the national interest.

Industrial development in the country is expected to create employment opportunities, increase exports, generate foreign exchange, increase state income, and boost economic growth.

Boy said that Indonesia should be grateful that at the age of 77, Indonesia still has good economic fundamentals, even though the Covid-19 pandemic has not fully recovered.

Indonesia recorded positive economic growth of 5.44 percent in the second quarter of 2022, as well as a surplus trade balance for 27 consecutive months. In fact, the surplus value this semester has reached Rp 364 trillion. Indonesia was also able to control inflation in the range of 4.9%, far below the ASEAN average of around 7% and below that of developed countries at around 9%.

Meanwhile, Chairman of the Indonesian Chamber of Commerce and Industry Arsjad Rasjid hopes that relations between Indonesia and China will improve in the future. He said the challenges facing the world today are not easy. This challenge must be faced together, by strengthening collaboration and cooperation between the two countries.

On a different occasion, Mahfud MD as Coordinating Minister for Political, Legal and Security Affairs said that the government continues to support the business world, including business actors from both countries, so that they can run their business better.

Thus, of course, it is hoped that there will be an increase in trade between the two countries, which in the end can improve the economy of each country.

Indonesian Ambassador to China, Djauhari Oratmangun, said the direction of this second largest economic investment to Indonesia would be prioritized in the renewable energy sector and the digital economy. Djauhari said the Indonesian government had encouraged investment with high added value from mineral resources into finished or semi-finished materials.

With the contribution of the digital economy to China’s national economy which has penetrated 32 percent, it is believed that Chinese digital companies will expand a lot in the country. The pharmaceutical industry, especially biotechnology, is also a mainstay for Indonesia in promoting investment.

Meanwhile, one of the eagerly awaited big investments comes from the electric vehicle sector with the presence of the world’s largest battery manufacturing player, Contemporary Amperex Technology Co.Ltd. (CATL).

China’s investment realization in 2021 was recorded at 3.9 billion US dollars. Down from 4.8 billion in 2020. He said the G20 presidency this year is believed to encourage Chinese investment bodies in the country.

The chairman of the Indonesian Employers’ Association (Apindo), Hariyadi Sukamdani, believes that the contribution of Chinese tourists in Indonesia will also experience rapid growth along with travelers.

Previously, APBN observer Awalil Rizky said the country’s need for foreign investment was not just the value of the investment invested. But the need for technology transfer from foreign companies operating in Indonesia.

The presence of investment from other countries will also make it easier for Indonesia to enter the international trade ecosystem. Not only that, it also opens up opportunities for these Indonesian-made products to be sold to the global market with an open market.

Apart from the tourism sector, investment also comes from the automotive sector, where the Indonesian automotive industry will receive refreshments from several manufacturers from Japan, South Korea and China to invest.

On the other hand, the President of the Republic of Indonesia, Joko Widodo (Jokowi) has also not remained silent. Jokowi also encouraged foreign investors to enter Indonesia, including when he visited East Asian countries such as China, South Korea and Japan at the end of last July.

The results of Jokowi’s visit to these countries are apparently not in vain, where Indonesia can get an investment commitment of USD

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