Indonesia competes with countries for factory relocation from China

[Nike]

Indonesia competes with countries for factory relocation from China
12 minutes ago

Chairman of the Indonesia Investment Coordinating Board (BKPM) Thomas Trikasih Lembong (left) during investment realization in Jakarta, Tuesday.

Jakarta (ANTARA) - Indonesia competed fiercely with several countries in working towards factory relocation from China owing to trade tensions with the United States, Indonesia Investment Coordinating Board (BKPM) Chairman Thomas Trikasih Lembong stated.

In his presentation on investment realization in Jakarta, Tuesday, Lembong explained that the Indonesian government, through the BKPM and the Ministry of Industry, continued to aggressively encourage China to relocate their industries to the country.

One of Apple's main suppliers, Pegatron, has successfully relocated its factory to Batam by investing US$40 million and will generate export potential of up to $1 billion annually.

"The Ministry of Industry is also communicating with an Apple supplier, Compal, to relocate to Indonesia. Foxconn and Wistron are the two main suppliers of Apple, who choose to go to India. Indeed, we face fierce competition to be able to work on factory relocation from China," he explained.

President Joko Widodo has, since the third quarter of 2018, given directives to work towards seizing the opportunity of factory relocation from China.

Hence, the BKPM and Ministry of Industry delegates have paid regular visits to Chinese furniture centers in Dongguan to relocate their factories to Indonesia.

On the other hand, despite the effects of the trade war, Lembong highlighted the current need to relocate industries outside China amid China’s economic structure no longer being conducive to labor-intensive industries.

"It is time for China to relocate factories that were taken from Southeast Asian countries 20 years ago. The number of workers in China has begun to decrease. China's economic structure is no longer conducive to labor-intensive industries. Now, they are in the high-value service sector and capital sector," Lembong remarked. Related news: Indonesian investment board ready to facilitate relocation of Chinese firms

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https://m.antaranews.com/en/news/13...h-countries-for-factory-relocation-from-china

 

[Nike]

investment realization reaches Rp395 trillion in 1st semester: BKPM
30th Jul 2019 17:57

Chief of the Investment Coordinating Board (BKPM) Thomas Lembong (left) and his deputy, Farah Ratnadewi Indriani (right) during a press conference held in Jakarta on Tuesday (July 30, 2019). (ANTARA/Ade Irma Junida/ FA))

Jakarta (ANTARA) - Indonesia's Investment Coordinating Board (BKPM) recorded that the realization of investment had reached Rp395.6 trillion in the first semester of 2019, or rising 9.4 percent, from Rp361.6 trillion during the corresponding period last year.

"The achievement constitutes 49.9 percent of the total targeted investment realization of Rp792.3 trillion," Farah Ratnadewi, deputy chairperson of the BKPM, stated here on Tuesday.

Investment realized during the January-June 2019 period comprised domestic investment to tune of Rp182.8 trillion, and foreign investment reaching Rp212.8 trillion.

"The realized investment employed 490,715 workers," she pointed out.

The top five sectors for the investment are transportation, warehousing and telecommunication; electricity, gas and water; construction; food industry; and housing, industrial zone as well as office space, the official revealed.

Investment in the first semester was realized in the provinces of West Java, Jakarta, Central Java, East Java, and Banten, she pointed out.

Five major foreign investors are Singapore, with investment worth US$3.4 billion; Japan (US$2.4 billion); China (US$2.3 billion); Hong Kong (US$1.3 billion); and Malaysia (US$1 billion).

The BKPM also released data of the investment realization in the second quarter (Q2) of 2019 amounting to Rp200.5 trillion, or rising 13.7 percent, from Rp176.3 trillion during the same period in 2018.

In Q2, realized domestic investment had reached Rp95.6 trillion and foreign realized investment was valued at Rp104.9 trillion.

BKPM Chief Thomas Lembong expressed optimism that the investment trend has improved following Indonesia's smooth and peaceful elections in April this year.

Indonesia's improved rating given by several rating institutions has contributed to the hike in investment realization, he pointed out.

Furthermore, reconciliation among rival politicians during the post-election period has also being viewed as a supporting factor in the recovery of the investment trend in this country, he noted.

"Indeed, challenges and threats exist, such as the trade war and a global economic slowdown. However, in Indonesia especially, I am optimistic that the current trend is positive and the future prospect is also very positive," he affirmed. Related news: BKPM projects double-digit investment growth in 2019
Related news: Indonesia sets higher target of investment in 2019

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https://m.antaranews.com/en/news/13...n-reaches-rp395-trillion-in-1st-semester-bkpm

 

[war&peace]

BTW Pakistan is the best place since there's not so much distance and factories located along CPEC can benefit from the trade route.

 

[denel]

Indonesia competes with countries for factory relocation from China
12 minutes ago

Chairman of the Indonesia Investment Coordinating Board (BKPM) Thomas Trikasih Lembong (left) during investment realization in Jakarta, Tuesday.

Jakarta (ANTARA) - Indonesia competed fiercely with several countries in working towards factory relocation from China owing to trade tensions with the United States, Indonesia Investment Coordinating Board (BKPM) Chairman Thomas Trikasih Lembong stated.

In his presentation on investment realization in Jakarta, Tuesday, Lembong explained that the Indonesian government, through the BKPM and the Ministry of Industry, continued to aggressively encourage China to relocate their industries to the country.

One of Apple's main suppliers, Pegatron, has successfully relocated its factory to Batam by investing US$40 million and will generate export potential of up to $1 billion annually.

"The Ministry of Industry is also communicating with an Apple supplier, Compal, to relocate to Indonesia. Foxconn and Wistron are the two main suppliers of Apple, who choose to go to India. Indeed, we face fierce competition to be able to work on factory relocation from China," he explained.

President Joko Widodo has, since the third quarter of 2018, given directives to work towards seizing the opportunity of factory relocation from China.

Hence, the BKPM and Ministry of Industry delegates have paid regular visits to Chinese furniture centers in Dongguan to relocate their factories to Indonesia.

On the other hand, despite the effects of the trade war, Lembong highlighted the current need to relocate industries outside China amid China’s economic structure no longer being conducive to labor-intensive industries.

"It is time for China to relocate factories that were taken from Southeast Asian countries 20 years ago. The number of workers in China has begun to decrease. China's economic structure is no longer conducive to labor-intensive industries. Now, they are in the high-value service sector and capital sector," Lembong remarked. Related news: Indonesian investment board ready to facilitate relocation of Chinese firms

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https://m.antaranews.com/en/news/13...h-countries-for-factory-relocation-from-china

Excellent. Well done; the pressure is on now to diversify. Let the Chinese pay the price for damage they have caused to all other countries.

 

[Nike]

FDI bullish but more regulatory improvements needed

• Rachmadea Aisyah
  The Jakarta Post
  

PREMIUM
Jakarta / Tue, July 30, 2019 / 07:06 pm

President Joko “Jokowi” Widodo (sitting, center), accompanied by Coordinating Economic Minister Darmin Nasution (right) and Investment Coordinating Board (BKPM) head Thomas Lembong (second right) visit the Online Single Submission (OSS) consultation center at the BKPM office in Jakarta on Monday. The office for the OSS, an integrated government licensing service, was moved to the BKPM recently from the Office of the Coordinating Economic Minister. (Antara/Wahyu Putro A.)
Stakeholders have lauded Indonesia’s success in boosting investment realization in the first half of this year but said more effort was needed to ensure the sustainability of the growth. Foreign direct investment (FDI) realization grew by 4 percent year-on-year (yoy) to Rp 212.8 trillion (US$15.2 billion) in the first six months of this year. Despite the seemingly sluggish growth, it was better than the achievement in the same period last year when it contracted by 1.1 percent yoy, the Coordinating Investment Board (BKPM) reported on Tuesday. Foreign business representatives offered optimistic views on Indonesia’s investment climate until year-end despite external turbulence and notable regulatory drawbacks. “Indonesia remains an attractive destination for FDI, mostly due to its large domestic market and relative political stability.

https://www.thejakartapost.com/news...-but-more-regulatory-improvements-needed.html

@Nilgiri Just realized investment

 

[Viet]

Indonesia competes with countries for factory relocation from China
12 minutes ago

Chairman of the Indonesia Investment Coordinating Board (BKPM) Thomas Trikasih Lembong (left) during investment realization in Jakarta, Tuesday.

Jakarta (ANTARA) - Indonesia competed fiercely with several countries in working towards factory relocation from China owing to trade tensions with the United States, Indonesia Investment Coordinating Board (BKPM) Chairman Thomas Trikasih Lembong stated.

In his presentation on investment realization in Jakarta, Tuesday, Lembong explained that the Indonesian government, through the BKPM and the Ministry of Industry, continued to aggressively encourage China to relocate their industries to the country.

One of Apple's main suppliers, Pegatron, has successfully relocated its factory to Batam by investing US$40 million and will generate export potential of up to $1 billion annually.

"The Ministry of Industry is also communicating with an Apple supplier, Compal, to relocate to Indonesia. Foxconn and Wistron are the two main suppliers of Apple, who choose to go to India. Indeed, we face fierce competition to be able to work on factory relocation from China," he explained.

President Joko Widodo has, since the third quarter of 2018, given directives to work towards seizing the opportunity of factory relocation from China.

Hence, the BKPM and Ministry of Industry delegates have paid regular visits to Chinese furniture centers in Dongguan to relocate their factories to Indonesia.

On the other hand, despite the effects of the trade war, Lembong highlighted the current need to relocate industries outside China amid China’s economic structure no longer being conducive to labor-intensive industries.

"It is time for China to relocate factories that were taken from Southeast Asian countries 20 years ago. The number of workers in China has begun to decrease. China's economic structure is no longer conducive to labor-intensive industries. Now, they are in the high-value service sector and capital sector," Lembong remarked. Related news: Indonesian investment board ready to facilitate relocation of Chinese firms

Close



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Editor: Suharto

COPYRIGHT © ANTARA 2019

https://m.antaranews.com/en/news/13...h-countries-for-factory-relocation-from-china

Sis, beware, chinese will become angry if you take them factories and jobs away.

@ChineseTiger1986

 

[Indos]

What is urgent now in Indonesia economy is to curb trade deficit as soon as possible. More investment to substitute imported goods are needed.

 

[nufix]

Sis, beware, chinese will become angry if you take them factories and jobs away.

@ChineseTiger1986

China is moving up the ladder to a more high added value products which explain the rising cost of labors since more skilled labors cost more. Meanwhile, the growth of labor force in China would presumably be not high since the population growth in China is not that high as well.

 

[CHN Bamboo]

Excellent. Well done; the pressure is on now to diversify. Let the Chinese pay the price for damage they have caused to all other countries.

pay the price = become a developed country and get rid of low-paying jobs.

>>they have caused to all other countries
What did the Chinese do to negro? Massacre?

 

[Viet]

What is urgent now in Indonesia economy is to curb trade deficit as soon as possible. More investment to substitute imported goods are needed.

You want to reduce trade deficits?
Not much difficult!
The magic formula is called export substitutions.

Let’s say you import huge amount of bicycles from China. Ok now you look for the same or similar bicycles in Vietnam and buy them if cheaper.

we are not only cheaper but delivery time is shorter. Look at the map: Vietnam is closer to Indonesia.

Once bicycles is checked you can continue with other import items.

Ok you may not find everything in Vietnam but you can search for other countries.

At the end of the day you will reduce the deficit substantially.

 

[ChineseTiger1986]

Sis, beware, chinese will become angry if you take them factories and jobs away.

@ChineseTiger1986

Nope, Indonesia will take all jobs away from Vietnam.

 

[Nike]

Investment will grow double digits: BKPM chief
30th Jul 2019 23:58

Chief of the Investment Coordinating Board (BKPM) Thomas Lembong (ANTARA FOTO/Rosa Panggabean)

Jakarta (ANTARA) - The realization of investment in the country will grow double digits owing to the recovery in investment trends, Chief of the Indonesian Investment Coordinating Board (BKPM) Thomas Lembong has stated.

"About the full year 2019, I am relatively conservative. I think it will grow by low double digits," he said in Jakarta Tuesday.


The recovery in investment trends began in 2018 and continued until the second quarter of 2019, he noted.


The optimism about de-escalation of the US-China trade war tensions and post-presidential election domestic political cycle will support the recovery in investment trends, he believed.


"Once again, investors have very high enthusiasm, particularly after President Jokowi gave an interview to several international media and delivered his (national) address at Sentul (International Convention Center/SICC)," he said.


The president's national address at SICC revealed the policies his government would be implementing during his second term in office. It had received a positive response from investors as could be seen from the numerous requests to hold meetings with the president-elect, he said.


"We have done our best to respond to the wave of post-election (investment) interests," he said.


BKPM has set the target of realized investment for 2019 at Rp792.3 trillion.


The board announced earlier in the day the realization of investment in the first semester of 2019 has reached Rp395.6 trillion, accounting for 49.9 percent of the target.


The investment comprised domestic investment worth Rp182.8 trillion and foreign investment worth Rp212.8 trillion.


The investment created a total of 490,715 jobs.


The top five sectors where one could see investments are transportation, warehousing and telecommunication; electricity, gas and water; construction; food industry; and housing, industrial zone as well as office space.


Five major foreign investors are Singapore, with investments worth US$3.4 billion; Japan (US$2.4 billion); China (US$2.3 billion); Hong Kong (US$1.3 billion); and Malaysia (US$1 billion).


Related news: Indonesia competes with countries for factory relocation from China

Related news: BKPM projects double-digit investment growth in 2019

Editor: Gusti Nur Cahya Aryani

COPYRIGHT © ANTARA 2019

 

[Viet]

Nope, Indonesia will take all jobs away from Vietnam.

Could be however unrealistic. We have a much stronger production base. Take rice production. We export rice, while Indonesia imports. The reason (they even admit it): our farmers are more or less fully mechanized, while in Indonesia the people still do rice planting in a primitive or traditional way

https://en.tempo.co/read/1220526/rice-export-plan-canceled-bulog-ceo-confirms

 

[8888888888888]

Indonesia has more people so they work for less, Vietnam only advantage is that it's close to China so any product parts will be cheap to transfer from China.

 

[mejikuhibiu]

Could be however unrealistic. We have a much stronger production base. Take rice production. We export rice, while Indonesia imports. The reason (they even admit it): our farmers are more or less fully mechanized, while in Indonesia the people still do rice planting in a primitive or traditional way

https://en.tempo.co/read/1220526/rice-export-plan-canceled-bulog-ceo-confirms

Viet only strong with cheap labor only..
N bout rice..we not only buy rice from viet..from thai too..viet rice quality is below thai..even we have decreasing paddy fields..still we bigger than u..
Ok than..just produce much more rice for us..and keep sell it in cheap price..because our rice is more expensive than viet rice..