JAKARTA - Bank Mandiri Treasury & International Banking Director Panji Irawan welcomed the Chinese government's decision to relax its Zero Covid Policy policy earlier this year. According to him, this step made the market more open and attractive to economic activities.
It was stated that Indonesia would also feel a positive effect as one of China's trading partners. He noted that China and Hong Kong are the second and third largest foreign sources of investment for Indonesia.
"There is 5.2 billion US dollars of Chinese investment that came into us or the equivalent of 15.5 percent of the total. Meanwhile, Hong Kong invested 3.9 billion US dollars. So what happens in China's mainland will clearly have an impact in Indonesia," he told the media crew on Tuesday, January 24.
Panji added that the easing of the Zero Covid Policy allowed the gradual recovery of community activities which then boosted public consumption. If mobility persists, it will encourage increased production of goods and services.
This condition then makes the need for resources higher and can be used by Indonesia as a trading partner country.
Yesterday I heard that 2 billion people were moving. If they do mobility twice, namely going and going home, then there are 4 billion people circulating. You can imagine the demand for energy and flight facilities and all kinds of things can lead to a positive series," he said.
Similarly, Bank Mandiri Chief Economist Andry Asmoro explained that China is the top country for Indonesia's export destinations. Likewise, Indonesia's imports, which are also mostly from China.
"The role is big, so if Zero Covid Policy with Chinese re-opening, of course, has a positive impact on Indonesia from an economic perspective," said Andry.
To note, in 2022 China is the top trading partner for non-oil and gas commodities with a value of 63.5 billion US dollars, or equivalent to 23 percent of the total.
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