Switzerland Becomes A Newcomer Country Entering The Top 5 Largest Investor List In Indonesia

ILLUSTRATION / GENEVA SWISS (DOK Ferdinand / VOI)

JAKARTA - The Investment Coordinating Board (BKPM) booked investment realization of Rp. 219.7 trillion in the first quarter of 2021, up 2.3 percent quarter to quarter and 4.3 percent on an annual basis or year on year.

From this investment realization, the realization of foreign investment (PMA) increased significantly to Rp. 111.7 trillion from Rp. 98 trillion last year.

BKPM Head Bahlil Lahadalia revealed that Singapore, which is a hub country for foreign investors, is still the largest country of origin for the realization of foreign direct investment, namely US $ 2.6 billion from 3,634 projects. The second position is occupied by China whose realization is worth US $ 1.0 billion with 813 projects.

Meanwhile, in third place is South Korea with an investment value of 900 million US dollars from 1,220 projects in the first three months of this year. Then, there is Hong Kong worth 800 million US dollars from 572 projects. New entrants to the top five, namely Switzerland, amounting to 500 million US dollars from 118 projects.

Meanwhile, Japan, which was replaced by South Korea, is now in seventh position with an investment value of US $ 322.7 million from 2,032 projects. Bahlil admitted that he did not know the reason for the low investment in Japan in the first quarter. According to him, this needs to be explored further.

"So if you are asked why? This will take time for me to explore, or maybe in the first quarter their investment has not been boosted too much, but maybe in the second quarter, third quarter or fourth quarter, they can only do it," he said, in a virtual press conference, Monday, April 26th.

According to Bahlil, the conditions of the COVID-19 pandemic indeed make each country and company need to carry out different investment strategies according to their conditions. However, Bahlil emphasized that Indonesia does not differentiate the treatment and investment services of each country, so that neither is too encouraged nor too tolerated.

"This means that all people, all countries have the same opportunity. By coincidence, maybe this time South Korea and Switzerland have more driving force. But that does not mean that so far there are already in the top five, that's all, this is dynamic. "he said.

Bahlil said Switzerland opened a new history of investment realization in the first quarter of 2021. This is because, he said, previously the country from the European region had never been in the top five, aka the top 5 as the country of origin for foreign investment in Indonesia.

"Switzerland has never happened, if I read, since the post-reformation era, Switzerland has never been in the top five, but this time it has appeared in the top five. It's like a soccer player, this is Switzerland," he explained.

There is also a flow of Swiss investment flowing into the food and beverage industry, followed by forestry, trade and repair, fishing and other industries.

"I think this is starting to get excited, the hope is that it can influence world perceptions, especially Europe through Switzerland and the Netherlands," he said.

Meanwhile, related to South Korea's increasing position in the list of the largest foreign investor countries in Indonesia, Bahlil said this was supported by the investment in electric cars by Hyundai Motor. The plan is for the company to produce electric cars with an investment of up to US $ 1.5 billion.

"One of them is the construction of the Hyundai factory, which in 2022 in March-April we will be able to produce electric cars, God willing," he explained.

Currently, he continued, investment realization from Hyundai is around Rp. 13 trillion to Rp. 15 trillion of the total investment plan. "This shows that the performance of companies from Korea with several other companies is going well," he said.