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Jakarta Post

Experts warn against complacency on FDI

  • Mardika Parama

    Jakarta

Jakarta   /   Thu, July 2 2020   /  01:00 am
Office of Investment Coordination Board (BKPM) in Jakarta(kontan.co.id/Achmad Fauzi)

Business associations and experts have welcomed the government’s announcement on the relocation of foreign-owned production facilities to Indonesia, a positive sign for the slowing economy amid the pandemic. However, they also warned that regulatory reforms would be needed to improve the country’s ease of doing business. President Joko “Jokowi” Widodo announced on Tuesday that seven foreign companies had confirmed plans to relocate production facilities to Indonesia, mostly from China. The move, which will include South Korean industrial conglomerate LG, is estimated to bring US$850 million to the country and potential employment for 30,000 workers, according to the Investment Coordinating Board (BKPM). Responding to Jokowi’s announcement, Indonesian Chamber of Commerce and Industry (Kadin) deputy chairwoman Shinta Kamdani said the relocation provided ...