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Indonesia wants firms relocating from China. Why are so few coming?

shi12jun

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As of the end of September, China's foreign investment is close to 110 billion U.S. dollars, and foreign investment in 2020 will reach 150 billion U.S. dollars
 

Place Of Space

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That is common knowledge that you share here. I just want to emphasis on why business people still want to invest in an authoritarian countries such as China although in the future there is possibility for this country to be like Syria or Libya if the transition into democracy is failed there.

Even in Indonesia during 1998 there was possibility for such event to happen with ambitious Prabowo who control the biggest and most modern Army corps, Kostrad, with his friend Safrie Samsudin who controls troops in Jakarta (Pangdam Jaya) and his other friend who control Kopassus (Special Force with 8000 strong soldiers with base located near Jakarta).

In the other hand Wiranto, Armed Force General, is given an authority by Soeharto to do what ever necessary to control the situation. Just think if this competing Generals use their soldier at that time when one force is going to crash reformation and the other force want to save reformation movement, but Alhamdulillah nothing happen and this two person understand the need to obey the civilian rule and embrace democracy. While our civilian leaders at that time alhamdulillah also get united during that fragile moment.

That friction actually happen and this is way during that period, 1998 riots, it was marine force who was rushly deployed in Jakarta by Wiranto although the base is farther than Kostrad.
Indon guy start to preach democracy, this is good. Philipines have longer demacracy history, guess Filipinos can lead you more or less.
 

Place Of Space

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Democracy is a good system where there is check and balance going on. Sometimes people dont understand harsh but good policy made by government and law makers like this Omnibus Law because lack of knowledge and information.

So there will be demonstration going on to express their opposition to the policy/law, and at this time it is due to the lack of knowleadge and understanding in economy. So it may create some kind of instability that can scare investors and bussines owners, but if the people is wise enough to follow the rule, the demonstration will not damage the stability too much.

In the other hand, the system also has the ability to prevent any ruler/law makers to act against their own nation benefit, democracy for example has better change to prevent Indonesia to have leader like Hitler or Kim Jong Un than country like China. So it may also create some sort of stability in the long term than any authoritarian nation.

Dont forget that any chaos happening in authoritarian countries can be really damaging, just look what happen in Syria and Libya. The reason there are still many foreign investors coming to China is because any business person actually cannot escape from doing gambling. It may effect your current finansial situation positively, but you need to sacrifice your freedom because of it and you need to live with the possibility to have some kind of revolution in the future like what happen in Syria and Libya.

For nowadays, democracy can be beneficial to some diplomatic issues, at least America will not intend to overthrow your country if you don't damage America interests heavily. Democracy is not helpful to solve internal issues. Education, science, economy and sometimes entertainment may better solve those problems. Whatever to say, a country or sociaty is consist of its persons who execute evey operations there.

By the way, Hitler was elected democratically, you must think it's ridiculous, suppression from UK and France make Hitler win the election. If Hitler didn't genocide the Jews, he would be great. Hitler were hated by Germany and Europe, Hitler break Germany fame and damage Europe powers. To Asia, Africa and America people may think it another story.
 

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