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Many Foreign Countries are Committed to Investing in Indonesia


By: Aulia Hawa )*

Indonesia is a country that supports ease of investment, both in terms of regulations, resources, and incentives for entrepreneurs. This convenience has encouraged many foreign countries to commit to invest in Indonesia.

Have you ever seen a foreign branded product but it was made in Indonesia? Actually this is not surprising anymore because since the New Order era, there have been many investors in this country. They build factories and work together in Indonesia and market their products here too, apart from in other countries.

In order to restore the country’s economy, the government is intensifying investment in Indonesia. The reason is because if there is more foreign investment, the more foreign exchange will be. Indonesia can recover from the effects of the Covid-19 pandemic that has lasted for more than 2 years.

The Minister of Investment, Bahlil Lahadalia, said that there were 10 countries that would invest in Indonesia. Among them are South Korea, England, China, Singapore, and so on. So it is not true if there is an issue which states that there is only a monopoly in one country that will invest in this country.

The issue that there is a monopoly from one country is very cruel because it is not based on facts, and people spread it intentionally because they do not like to see Indonesia’s closeness to that country. Moreover, they can relate it to the issue of colonialism. Whereas investment is not covert colonialism, but a form of equal and mutually beneficial business cooperation.

Bahlil added that the investment value is also not playing with the nominal. Hong Kong invested up to 1.5 billion US dollars, while Singapore invested more than 3 billion US dollars. This indicates that they have great trust in Indonesia and think that investment is very profitable.

Many foreign countries are committed to investing in Indonesia because first, the government provides clear regulations and protects investors, through the Omnibus Law on Job Creation. In the law there is an investment cluster that allows investors to enter and makes it easier for business licensing.

Second, the guarantee to invest in Indonesia is given directly by President Jokowi. This is what makes foreign entrepreneurs believe and want to invest in this country. they are willing to spend a lot of money because they believe in the guarantee from the president.

Third, Indonesia has been blessed with God Almighty with abundant natural resources and mining materials, which can be processed into profitable merchandise. With a cooperation system, investors can participate in processing it and there is profit sharing.

Indonesia also has quite a lot of human resources because the number of its citizens is more than 200 million people. Human resources, which on average have bachelor’s degrees, make foreign entrepreneurs want to make them reliable employees and want to be taught to work properly.

The population is also the reason why investors want to invest in Indonesia, because the more people there are, the bigger the market. When an investor opens a shoe factory in Indonesia, it is clear that the market is the Indonesian people themselves. Moreover, the people of this country are known to be rather consumptive so that it becomes a lucrative market.

The number of foreign countries investing in Indonesia is a very good thing because they believe in the various advantages that exist in Indonesia compared to other countries. The community is also expected to participate in supporting government programs in increasing investment which will open up wider job opportunities.

)* The author is a contributor to Pertiwi Institute

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