32 Companies Go to Vietnam, Bahlil Reveals the Reason Indonesia Does Not Get Investment

Minister of Energy and Mineral Resources Bahlil Lahadalia. (IST)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed one of the problems that once made Indonesia lose competitiveness in attracting investment from Vietnam. The problem is not just licensing, but the price of land in industrial areas.

Bahlil said that during the China-United States trade war period of 2016-2017, there were 32 companies that left China for Vietnam. Indonesia, according to Bahlil, did not get a share.

Bahlil made the statement during the 50th anniversary and the launch of 10 of his books at the Jakarta Theater, Friday, August 7.

"There are 32 companies that have left China for Vietnam, Indonesia cannot get it," said Bahlil.

He said he was then asked to investigate the cause.

According to Bahlil, one of the big differences is in the price of industrial land. In Vietnam, the price of land is said to be around Rp600,000, while in Indonesia it can reach Rp2 million.

"I say again, this is not an industrial area, this is a land industrial area," he said.

From that problem, Bahlil said the idea of developing the Batang Integrated Industrial Area or KITB was born.

The area was built with the involvement of the state to suppress land prices so that Indonesia is more competitive in attracting investors.

According to Bahlil, the price of land in the Batang area at that time was around Rp600,000.

He said the concept and master plan of the area were prepared together with the Investment Ministry team.

"It's not me who is great, but the team of the Investment Ministry who is great," he said.

Bahlil also recalled how the name KITB was accidentally changed by members of Commission VI of the DPR to "Bahlil Integrated Industrial Area".

The story then became part of his book which discusses Batang as an investment magnet.