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HSBC committed to increasing investment in Indonesia through BKPM partnership
HSBC, in a solid partnership with the Ministry of Investment/Investment Coordinating Board (BKPM), has committed to boosting its investment in
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.. (JP/R Berto Wedhatama)
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SBC, in a solid partnership with the Ministry of Investment/Investment Coordinating Board (BKPM), has committed to boosting its investment in Indonesia as a follow-up to the country’s progressive dynamics and its determined strategies to rebound from the COVID-19 pandemic, which has massively hit almost every line of business.
As a follow-up, the world’s largest archipelagic country will need to focus on ensuring a sustained recovery.
HSBC, a long-standing global partner of Indonesia, has acknowledged the country’s potential as one of the world’s fastest-growing major economies with massive investment opportunities. Therefore, alongside the Ministry of Investment/BKPM, HSBC organized a bilateral discussion titled “In Conversation with Indonesia” about the country’s massive investment opportunities.
The session was part of HSBC’s commitment to connect the world’s third-largest democracy with global business and opportunities.
“HSBC is very proud to be part of Indonesia’s growth stories. We have been operating for 137 years here, and now we’re connecting Indonesia to the world and the world to Indonesia,” Bank HSBC Indonesia president director Francois de Maricourt said, as quoted in a press statement sent to The Jakarta Post on Tuesday.
Maricourt said the discussion was a significant stage for exchanging ideas, as Asia had already become the engine room of the global economy and HSBC believed Southeast Asia in general and Indonesia in particular would play increasing roles in driving development and creating prosperity.
HSBC is investing US$6 billion in Asia for the next five years to boost both domestic and international business in the region.
Maricourt also praised Indonesia’s efforts to overcome the COVID-19 pandemic and resume economic development.
“But there are three critical issues that should be addressed to ensure that companies can truly capitalize on the rebound, namely sustainable investment, simplifying investment regulations and digital connectivity,” Maricourt said.
The “In Conversation with Indonesia” forum was part of HSBC Summit 2021, a series of virtual events tailored to offer deeper comprehension of the state of the Indonesian economy, global investment prospects and future potential.
Minister of Investment Bahlil Lahadalia praised the strategic collaboration with HSBC, saying Indonesia had entered a new era after the passage of the Job Creation Law, as it offered not only facilities for the business world but also certainty, transparency and efficiency in licensing, which is now done digitally through the Online Single Submission (OSS) system.
He said investment realization had reached Rp 223 trillion ($15.61 billion) in the Q2 2021, proving that the government was able to keep its targets and promises. Bahlil, a former businessman himself, added that Indonesia had grown into a huge destination for investment as infrastructure outside of Java had significantly improved.
Director of Investment Promotion Development of the Ministry of Investment/BKPM, Ricky Kusmayadi, said that in Indonesia’s case, the top five investors had always been fellow Asian countries and regions, such as Singapore, South Korea, China and Hong Kong. As for European countries, three names came up, namely Switzerland, the Netherlands and the United Kingdom, he added.
“European investors, particularly, are fond of certainty, and the government has gone all out in providing necessary solutions,” he told the session.
He went on to say that the government had been responsive in tackling barriers, including by passing the Job Creation Law and related implementing regulations, which would improve the ease of doing business for investors.
The government has also been working on infrastructure projects to provide more access for not only residents but also businesses.
According to the Public Works and Housing Ministry, infrastructure spending had reached Rp 67.66 trillion as of Aug. 24, or 49.10 percent of the 2021 target of Rp 143.19 trillion.
Under President Joko “Jokowi” Widodo’s second term, the government has earmarked Rp 420 trillion for infrastructure construction and development, a 157 percent jump from the 2014 figure — the beginning of Jokowi’s first term — of just Rp 163 trillion.
The government has also offered various incentives to encourage businesses both in and outside of Java to optimize their performance.
Ricky expected that the session would be insightful and could thus bring investor candidates closer to the country and its latest conditions.
Approximately 20 investor candidates from Asia, Europe and North America participated in the session. Most of them had manufacturing backgrounds, while others had backgrounds that included distribution, technology, energy consultancy, retail, the automotive business, agriculture and finance.
Some 20 Ministry of Investment/BKPM and HSBC senior staff members also joined the session, which lasted for four hours in two different time zones, Asia and Europe/United States.
At the session, HSBC and the Ministry of Investment/BKPM provided a clear narrative of Indonesia’s positive investment climate, opportunities and interesting incentives, while also addressing regulation considerations. HSBC Indonesia and the Ministry of Investment/BKPM will always be committed to working together to facilitate investment in Indonesia.
