Sign up | Log in



Home  >>   Daily News  >>   Indonesia  >>Investment  >> Indonesia to push China to realize investment
NEW UPDATES Asean Affairs  7 April  2015  

Indonesia to push China to realize investment

The government will try to push Chinese investors to follow through on their plans to invest in Indonesia, as the realization of previous Chinese-backed investments has been lacking at best.

Of the total US$24.27 billion in planed investments between 2005 and 2014, only $1.8 billion, equal to 7 percent, were realized, statistics from the Investment Coordinating Board (BKPM) show.

Among the major obstacles hampering the fulfillment of investment plans were investors’ failure to find appropriate local business partners, their lack of knowledge about Indonesia and the lengthy procedures to process investment licenses, BKPM chief Franky Sibarani said.

Absence of supporting institutions or business communities to help provide investment-related information such as the Japan External Trade Organization (JETRO) for Japan or the Korean Trade Center (KOTRA) for Korea, also contributed to the low realization, he added.

“Our next step is to be more proactive in our approach to Chinese investors. We will maximize our special investment management team and collaborate with our embassy and affiliated economic bureau in China,” Franky said.

Another move will be to open an investment promotion office in China’s capital, Beijing, in a bid to help garner interest from Chinese firms, according to Franky.

Securing investments from the world’s second-biggest economy has been an Indonesian interest for some time and, as suggested by some economists, is a way to offset trade deficits arising from bilateral trade.

Since the implementation of the ASEAN-China Free Trade Agreement (ACFTA), Indonesia has been more dependent on imports from China, including raw materials and intermediary inputs.

The trade gap consistently followed an upward trend in recent years, climbing to $13.02 billion in 2014 from only $4.73 billion in 2010.

Indonesia has repeatedly asked for higher Chinese investments through formal requests, including one made by then vice president Boediono to then Chinese premier Wen Jiabao during his visit to China in 2011.

A number of memorandums of understanding were sealed between Chinese investors and Indonesian partners, but little has been actualized.

During the recent visit of President Joko “Jokowi” Widodo to China, a number of Chinese firms expressed their interest in pouring investment into Indonesia and inked at least 30 deals with Indonesian business partners.

The agreements amounted to $63.40 billion in direct investment with $24.9 billion of it to be tunneled into infrastructure projects, such as the development of power plants, seaports, telecommunication networks and railways.

The new administration suggested that $460 billion in investments are needed to finance numerous infrastructure projects to better connect the sprawling archipelago of more than 17,000 islands. Of this immense figure, the government can only contribute 22 percent from the state budget, meaning that the majority should be generated from other sources.

“As Chinese investors are keen on investing in infrastructure, we will encourage them to channel their funds to their preferred infrastructure projects,” Franky said, adding that another Chinese source that Indonesia could benefit from would be the Asia Investment Infrastructure Fund.

The Chinese-led fund, announced five months ago, is committed to providing credit to infrastructure projects in developing nations across Asia.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           April  7 , 2015 Subsribe Now !
• Online commodities exchange could help pulses trade Subcribe: Asean Affairs Global Magazine
• Budget collection jumps on economic recovery
• Indonesia to push China to realize investment
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Bill to boost infrastructure financing ready for deliberation
• More than 70,000 visit Travel Revolution Fair
Asean Analysis                    March 25, 2015
• Asean Analysis March 25, 2015
Statement on Singapore’s first Prime Minister’s Passing
Advertise Your Brand

Asean Stock Watch  April 2,  2015
• Asean Stock Watch-April 2, 2015
The Biweekly Update
• The Biweekly Update March 20, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand