Airlangga Hartarto: Indonesia Could Replace China as an Investment Destination

Tangkap layar Menteri Koordinator bidang Perekonomian Airlangga Hartarto. (Mery Handayani/VOI)

JAKARTA - The Coordinating Minister for Economic Affairs, Airlangga Hartarto, said the COVID-19 pandemic gave a lesson for countries in the world, that the supply chain of goods shouldn't be only centered on a single country.

Furthermore, amidst the uncertainty about the pandemic, each country cannot depend on other countries. It is too risky.

So far, many countries have relied on China as an importer and exporter country. So, when China limits their economic activity due to lockdown, it will also affect other countries.

"China policy to suppress the COVID-19 virus has caused the global supply chain to be severely shaken. It hampered business operations on a global scale, and decreased revenues," he said during his remarks at the virtual event by HSBC, Wednesday, September 16.

This condition makes investors have to think carefully to move their investments to other countries. This condition provides an opportunity for Indonesia to become a new investment destination country.

"Many companies are starting to relocate their industries from China to other Asian countries. Especially in the ASEAN region. It could be an opportunity for Indonesia to replace China as an investment destination for a new global supply chain hub," he said.

Based on data from the Investment Coordinating Board (BKPM), there were at least 143 companies who plan to relocate investment to Indonesia from the United States, Taiwan, South Korea, Hong Kong, China, and Japan.

"This investment relocation has the potential to absorb more than 300 thousand Indonesian workers," he said.