The government has actually developed an unique task force to attract businesses leaving China and facilitate their relocation to Indonesia.
American, Japanese and South Korean companies are supposedly in conversations with the Investment Coordinating Board (BKPM) over their possible moving to the Batang and Brebes industrial districts in Central Java, which are currently under advancement.
According to BKPM head Bahlil Lahadalia, the agency has finished 60 percent of the moving procedure for some firms.
” I provided the task force 3 jobs, namely detecting companies preparing to transfer, examining the ease [of doing business] offered by other countries and, importantly, deciding in a negotiation,” Bahlil specified in a news release on June 19.
The establishment of the job force was part of the federal government’s efforts to reduce the financial impact of COVID-19 on foreign direct investment, which fell 9.2 percent year-on-year (yoy) to Rp 98 trillion (US$ 6.9 billion) in the very first quarter of 2020.
The coronavirus outbreak, which was first spotted in China, has strained Indonesia’s foreign direct financial investment as jobs have been delayed as an outcome of social constraints to consist of the spread of the virus. The pandemic has actually also disrupted international supply chains and has made some companies question their heavy dependence on China.
Bahlil, who formerly led the Association of Young Indonesian Business Owners (HIPMI), decreased to offer details of business preparing to transfer to the country, stating that he was ” awaiting the President himself to reveal them”.
BKPM information shows that Japanese companies invested $604 million in the first three months of this year, making it the fourth-largest country of origin for foreign direct investment in the period. South Korean companies were the 8th largest, investing $1304 million, followed by the United States with $1141 million.
