Chinese Investment Floods Indonesia, Ex-Deputy Chairman Of The Corruption Eradication Commission Fears That Faisal Basri Does Not Agree

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - In the midst of the COVID-19 pandemic, China's position as one of the largest investor countries for Indonesia is getting stronger. From January to September 2020, China has realized its investment in Indonesia amounting to 3.5 billion US dollars.

The realization of this investment has succeeded in placing China in the second position of the largest foreign investment in Indonesia. This condition needs attention. This is because China is the country with the highest level of fraudulent payments in the world.

Because of this fact, the former Deputy Chairman of the Corruption Eradication Commission (KPK) volume IV Laode M Syarif said he was worried that China would become the largest country investing in the country.

"I'm actually afraid a little. Actually not a little but afraid a lot. When China will become the number one investor in Indonesia," he said, in a virtual discussion, Tuesday, December 8.

Based on the data it has, China is the first country in terms of improper payments. Meanwhile, Indonesia is ranked 6th in the survey on the US-Foreign Corrupt Practices Act (FCPA) issue during 2011-2020.

"If we look at the US-FCPA, the location for improper payments, the number one is China. Followed by Brazil, India, Mexico, Russia, then Indonesia. I am afraid when Chinese will become the biggest investor in Indonesia," he said.

The Chinese Investment Flow Is Horrified

The Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia confirmed the data. China's investment flow is most courageous and reckless. In contrast to other countries, such as Japan, which are more concerned with investing.

"That it is true that this data exists. China is a country that is horrifyingly delicious too. I'm honest," he said.

He gave nickel as an example. Almost all of its smelters come from China.

But indeed, he admitted, China was the most courageous compared to other countries. This is very much needed in investment in the mining sector.

"Japan has too much research, other countries too. The debate is begging for mercy. It's a bit reckless, investors from China. They work first and then think," he explained.

In addition, not all Chinese investors are compliant. Therefore, the government is trying to bind Chinese investors with clear business agreements so as not to cause losses to either party.

"Now our task is how when they (China) invest, we must tie them in a clear and clean agreement so as not to cause potential losses," he said.

Japanese investment is more profitable than China

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Senior Economist Faisal Basri said Indonesia should not depend on investment from China. He assessed that the government should hope for investment from micro, small and medium enterprises (MSMEs) from Japan.

According to Faisal, UMKM from Japan will not bring many workers from their country. This is in contrast to the habits of Chinese investors who often bring in workers from their country.

"Japanese MSMEs will not bring (workers). So 100 percent of Indonesian workers," he said, in Jakarta, Thursday, November 26.

In addition, Japanese MSMEs also have the potential to seek partners from MSMEs in Indonesia. The reason is, Japanese MSMEs will not be able to stand alone without the help of Indonesian partners.

"The government is building a database, so if Japanese MSMEs are looking for partners, they can immediately show them and build industrial estates for MSMEs," he said.

In addition, Faisal said that the entry of MSMEs from Japan could also help improve the quality of domestic MSMEs. That way, the Indonesian UMKM industry can be better in the future.

Furthermore, Faisal also reminded the government not to keep waiting for investment from China to boost foreign investment (PMA) in Indonesia. This is because many investments from China are problematic.

"Why wait from China, it's better to vomit from Japan because China's investment is problematic. It's a smelter, a cement factory, it's bad," he said.

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