Luhut Claims Indonesia Is The Destination For The Relocation Of Vietnamese And Taiwan Factorys

JAKARTA - Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan revealed that the trade agreement between Indonesia and the United States (US) has the potential to open up many jobs.

According to him, this is due to the import rates set by the US for Indonesia, which are much lower than several ASEAN member countries.

Luhut said that countries such as Vietnam and Taiwan have the potential to relocate factories to Indonesia, because the import rates imposed by the US on Vietnam reach 20 percent, while for Taiwan at 32 percent and Indonesia is only charged a tariff of 19 percent.

"This 19 percent tariff is still a lot of breaks that will make our economy good going forward. Jobs, many people from Vietnam also want to, Taiwan also wants to relocate because 1 percent are really very meaningful," he said at the launch of the Padi Kapas Indonesia Foundation, at the Indonesia Stock Exchange (IDX), Jakarta, Monday, July 28.

He added that Indonesia has abundant wealth of natural resources in the mining sector so that it becomes an attraction for foreign investors.

"So we have a lot, we have critical minerals, we have rare earth, have a lot of seaweed and so on," he explained.

Luhut also emphasized that there is no reason for Indonesia not to grow, and with the hard work and national synergy, Indonesia's economic growth can reach 7 to 8 percent in 2029-2030.

"Unless we didn't really see the problem, we didn't go into details doing it, we didn't build cohesiveness, we blamed each other, it would be a victim to the people," he concluded.