CHINA TOPIX

11/21/2024 03:25:48 pm

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Indonesia Seeks To Lure Chinese Investors with 'China Desk'

China Investment in Indonesia

China's Premier Li Keqiang (R) meets Indonesia's President Joko Widodo (L) at the Great Hall of the People on March 27, 2015 in Beijing, China. (Photo by Feng Li - Pool/Getty Images)

In an effort to further entice more Chinese investors to invest in Indonesia, the Indonesian government recently announced that it will soon set up a "China Desk" that will be manned by Chinese-speaking staff.

The "China Desk" will be similar to the special desk that the Indonesian government had already set up for investors from Asian giants Japan and South Korea, according to a report published by The Bangkok Post.

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The desk will be manned by Chinese-speaking staff, including two to three Chinese Embassy employees, that will answer inquiries and concerns that will be raised by Chinese investors wanting to pour capital in Indonesia.

The "China Desk" will address issues that have discouraged potential Chinese investors and increase investment realization from China. Among them are language barriers and slow responses on land inquiries.

Indonesia is gearing up and rolling out incentives and other benefits just to entice more Chinese investors to look into the country and invest. Chinese companies are moving toward global expansion to widen their market reach and Indonesia wants to corner a huge chunk of these companies.

"With the presence of the desk, we want to increase investment realization from China," said Investment Coordinating Board head head Franky Sibarani.

Sibarani further told reporters on the sidelines of a China-Hong Kong investor forum that the rapid growth of Chinese investment in Indonesia, as well as intensive communication between investors and the government, require assistance from those familiar with the Chinese language.

Investment commitments from China doubled to US$22 billion in 2015, from an average of US$11.3 billion per year in the five-year period ending 2014, the report added.

Chinese Ambassador to Indonesia Xie Feng also confirmed that Indonesia is a priority destination for Chinese companies and that most Chinese investors are bullish on the administration of President Joko "Jokowi" Widodo.

"Less than two years after his inauguration, I think we have seen changes. We hope for more changes in years ahead," he said.

China and Hong Kong ranked 7th in terms of foreign direct investment realization in Indonesia for the period 2010-2015.

The top 10 in terms of FDI realization during the said period were, in order, Singapore, Japan, United States, South Korea, Malaysia, the Netherlands, China & Hong Kong, British Virgin Islands, United Kingdom, and Mauritius.

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