JETRO Survey: Japanese Companies In Indonesia Interested In Expansion, Moeldoko: We Welcome

Presidential Chief of Staff (KSP) Moeldoko together with the President Director of the Japan External Trade Organization (JETRO), at the Bina Graha building, Jakarta, Wednesday, March 20

JAKARTA - Presidential Chief of Staff (KSP) Moeldoko received an explanation from the President Director of the Japan External Trade Organization (JETRO), Masakazu Takahashi regarding the results of the latest survey of the business conditions of Japanese business companies in Indonesia in 2023 at the Bina Graha building, Jakarta, Wednesday, March 20.

In the survey report, 71.4% of companies affiliated with Japan in Indonesia are expected to be 'profitable' in terms of operating income in 2023. Where this figure is the highest number compared to other ASEAN countries.

Takahashi also mentioned 42.1% of companies revealed that operating profit in 2023 increased compared to survey results in 2022.

"This is supported by an increase in demand (demand) in the Indonesian domestic market," said Takahashi.

In addition, Masakazu added that 49.5% of Japanese companies in Indonesia are interested in expanding. Expectations for the expansion of domestic market demand in Indonesia are higher than ASEAN as a whole.

Japanese companies in Indonesia, Masakazu continued, are looking at various business benefits in Indonesia. Among others, market sizes and potential growth, low wage costs, the ease of recruitment of local staff, as well as the stability of the domestic political and social situation.

Not only that, Masakazu also explained some of the risks faced by Japanese companies in Indonesia. Among other things, the increase in labor costs, policy management from the government which is not clear, as well as tax procedures that take time.

"We hope that the Indonesian government in the process of making these regulations can communicate more intensely (Japanese companies in Indonesia). Meanwhile, in terms of taxation, we really appreciate the transparency of the Supreme Court in handling tax cases," said Masakazu.

Moeldoko responded to the optimism of Japanese companies that continue to operate in Indonesia, even expanding is proof that the national economy is still strong.

President Jokowi's policy always welcomes investment, including implementing simplification of regulations. This is done to make it easier, no one aims to make investments into Indonesia difficult. All goes well," said Moeldoko.

Regarding various inputs submitted by business actors from Japan in Indonesia, Moeldoko said that the results of the survey would be an evaluation material in the future for the government in strengthening the economy and investment. "We will use this as a memo for the relevant Ministries," concluded Moeldoko.