We Are Busy Looking For Investments, Indonesian Companies Increase Investments In China, Head Of Bappenas: Mrs. Sri Mulyani Can Be Traced

Minister of National Development Planning/Head of Bappenas Suharso Monoarfa. (Photo: By courtesy)

JAKARTA - Minister of National Development Planning/Head of Bappenas Suharso Monoarfa revealed that there are corporations from Indonesia that are developing business in China. According to him, the company is engaged in the chemical industry and is currently in the phase of business expansion.

"Maybe the Minister of Finance can trace that there are Indonesian companies that have built chemical complexes in China and (they) increased their capacity (production) in recent years," he said in the 2021 Central Development Coordination Meeting which was broadcast virtually, Thursday, April 29.

Suharso added that investment by Indonesian companies in China also helped the country increase foreign direct investment (FDI).

In his statement, China's FDI grew by 43 percent during the first quarter of 2021. The success of the Bamboo Curtain country is reflected in the addition of 10,263 new companies.

"Of the total investment, approximately 60 percent of them come from ASEAN, including Indonesia," he said.

As for other capital investment comes from countries along with the Belt Road Initiative and the European Union.

"The Chinese economy contributes 16.3 percent to the formation of world GDP (gross domestic product)," he said.

To note, the Indonesian government itself is intensifying investment absorption to boost economic growth which tends to slope after the COVID-19 pandemic.

Most recently, President Joko Widodo (Jokowi) formed the Ministry of Investment which was merged with the Investment Coordinating Board (BKPM).

According to VOI's record, investment plays an important role in accelerating economic recovery, especially in the form of direct investment.

Based on data reported by the BKPM, throughout 2020, Indonesia's investment realization amounted to Rp826.3 trillion or 101.1 percent of the previously set target of Rp817.2 trillion.

Of this amount, the realization of domestic investment (PMDN) reached Rp413.5 trillion, or the equivalent of 51 percent of the total. Meanwhile, foreign investment (PMA) is Rp412.8 trillion or 49 percent.

Meanwhile, for the first quarter of 2021, investment realization was recorded at Rp219.7 trillion, or grew 2.3 percent quarter to quarter and 4.3 percent on an annual basis or year on year.