Luhut Reminds Chinese Investors To Protect The Indonesian Environment

The Indonesian Ambassador to China and Mongolia Djauhari Oratmangun, Consul General of the Republic of Indonesia in Shanghai Berlianto Situngkir and Menkomarinves Luhut Binsar Pandjaitan in Shanghai, China, Sunday (16/6/2024). (ANTARA/Desca Lidya Natalia)

Coordinating Minister for Maritime Affairs and Investment (Menkomarinves) Luhut Binsar Pandjaitan revealed that he had conveyed to Chinese entrepreneurs to protect the environment when investing in Indonesia.

"I told them yesterday, it must be 'comply' (compliance) to the environmental (rules), it must not be compromised," Luhut told ANTARA in Shanghai, China on Sunday.

Luhut made a working visit to China since Wednesday (12/6) by visiting a number of cities and areas such as Beijing, Jilin and Shanghai.

He, among other things, met with Chinese Foreign Minister Wang Yi, China's National Development and Reform Commission (NDRC) Head Zheng Shanjie, officials from Tsinghua University and businessmen from China.

"(I said) 'If you violate the environment, we close it', (They answered) 'Don't be too fierce', I just said this time we can't, we certainly give a warning, I will tell you that," added Luhut.

Luhut considered that Indonesia had become an investment destination for China.

"It's just how we live in the country to maintain that condition, so that they are more comfortable, for example if there are problems in their investment, it will be resolved immediately," said Luhut, who admitted that he did not have a special recipe to approach investors from China.

During his visit to China, Luhut also said that one garment company from the country agreed to set up factories in Subang and Sukoharjo.

"Workers in one factory can be 10 thousand people, but the most important thing is because they build houses for their employees, 'employee houses', imagine that 10 thousand people are built houses, that could be another model (for investors)," said Luhut.

The garment company, said Luhut, has a sales value of US$4.5 billion in 2023.

"If the land is done, next month it will immediately be (building), yesterday I called the Minister of ATR to get the certificate," said Luhut.

The value of Chinese investment in Indonesia based on data from the Ministry of Investment/Investment Coordinating Agency (BKPM) in the 2019 - first quarter of 2024 reached 30.2 billion US dollars with 21.022,000 projects.

Meanwhile, in 2023 alone, the total investment is 7.3 billion US dollars (around Rp120 trillion). With this value, China ranks second-largest investment in Indonesia after Singapore.

Based on BKPM records, the five main sectors of Chinese investment in Indonesia since 2019 are the first, the basic metal processing industry worth 12.8 billion US dollars or 41 percent of China's entire investment sector.

Second, the transportation, warehousing and telecommunications sectors worth US$7.9 billion (26 percent of total investment), third, the electricity, gas and water sectors worth US$2.5 billion (8 percent of the total investment).

Fourth, the chemical and pharmaceutical industries worth US$2.4 billion (8 percent) and fifth, the industrial, housing and office sectors amounting to US$2 billion (7 percent).

The five countries and regions that invest the most in Indonesia are Singapore, China, Hong Kong, Japan and Malaysia.