Ex-KPK Chairman Laode M Syarif Is Worried About The Large Amount Of Chinese Investment In Indonesia

JAKARTA - Former Deputy Chairman of the Corruption Eradication Commission (KPK) Laode M Syarif said he was worried that China would become the country with the most investments in Indonesia.

This is because China, according to him, was the top country with improper payments in the survey on the US-Foreign Corrupt Practices Act (FCPA) during 2011-2020.

"If we look at the US-Foreign Corrupt Practices Act, the number one location for improper payments is China, followed by Brazil, India, Mexico, Russia and Indonesia," Laode said in a business webinar in Jakarta, quoted by Antara, Tuesday, December 8.

The US-FCPA is the Foreign Corrupt Practices Act which prohibits US companies and individuals from paying bribes to foreign officials for further business deals.

The survey was conducted to look at problems in US-FCPA implementation where the country ranking chart in the survey depicts the countries where bribes are offered or paid, based on allegations in enforcement action that began in the last ten years.

With the results of the survey, Laode said he was worried that Chinese investment would flood Indonesia.

"I am very afraid of a little, not a little, but a lot of fear, when the Chinese become the biggest investor in Indonesia (if China becomes the biggest investor in Indonesia)," he said.

Responding to Laode's concern, Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the Indonesian government emphasized that no country should control Indonesia in the context of investment.

Indonesia, he said, also gave equal treatment to all investment partner countries, including China.

"China is a country that is horrifyingly delicious, I'm honest. But our policy direction in the future, no one country should control Indonesia in the context of investment. We must provide equality to other countries as well," said Bahlil.

However, Bahlil admitted that Chinese investors are indeed among the most courageous and courageous in terms of investment. In contrast to other countries such as Japan, which have many considerations in investing.

"For example, nickel. Almost all of the smelters now come from China. But from their point of view, this is the bravest one. Japan has too much research. Other countries too. The debate is begging for mercy. Indeed, those who are a bit desperate like us easterners, yes. investors from China. They work first then think, "explained Bahlil.

Bahlil also acknowledged that not all Chinese investors are good and compliant. Therefore, the government is trying to bind Chinese investors with clear business agreements so as not to cause harm to either party.

"Now our task is how when they invest, we must tie them in a clear and clean agreement so that they do not cause things that are not loss oriented," he said.

The former Chairman of Hipmi said that especially in the mining sector, courageous investors are needed because this sector is high in risk.

"Now coincidentally, investors from China have more courage. But, let's not follow this courage without concluding with good rules. This is now our job that we have to do," he said.