“I gave the task force three tasks, namely detecting firms planning to relocate, analyzing the ease [of doing business] offered by other countries and, importantly, making a decision in a negotiation,” Bahlil stated in a press release on June 19.The establishment of the task force was part of the government’s efforts to minimize the economic impact of COVID-19 on foreign direct investment, which fell 9.2 percent year-on-year (yoy) to Rp 98 trillion (US$6.9 billion) in the first quarter of 2020.The coronavirus outbreak, which was first detected in China, has strained Indonesia’s foreign direct investment as projects have been delayed as a result of social restrictions to contain the spread of the virus. The pandemic has also disrupted global supply chains and has made some companies question their heavy reliance on China.Bahlil, who formerly led the Association of Young Indonesian Entrepreneurs (HIPMI), declined to provide details of the businesses planning to relocate to the country, saying that he was “waiting for the President himself to announce them”.BKPM data shows that Japanese firms invested $604 million in the first three months of this year, making it the fourth-largest country of origin for foreign direct investment in the period. South Korean firms were the eighth largest, investing $130.4 million, followed by the United States with $114.1 million.Topics : The government has established a special task force to attract businesses leaving China and facilitate their relocation to Indonesia.American, Japanese and South Korean companies are reportedly in discussions with the Investment Coordinating Board (BKPM) over their potential relocation to the Batang and Brebes industrial districts in Central Java, which are currently under development.According to BKPM head Bahlil Lahadalia, the agency has completed 60 percent of the relocation process for some firms.
Bilateral cooperation between Indonesia and France remains strong amid the COVID-19 pandemic. The two countries will finalize several bilateral cooperations in the energy sector, Indonesian Ambassador to France Arrmanatha Nasir says.Arrmanatha said in a statement on Wednesday that the embassy with the French Business Confederation (MEDEF) had held an investor gathering for the energy sector in Indonesia on Tuesday. Sixty French companies participated in the virtual forum, at which Energy and Mineral Resources Minister Arifin Tasrif was the guest speaker.”Potential French energy investors showed their interest in Indonesia’s energy sector potential. In the question and answer session, prospective French investors questioned the minister about many things, especially Indonesia’s future plans in renewable energy,” he said.They also discussed the B40 national biofuel production program, divestment plans in the energy sector, emission reduction commitments, the Mining Law amendment and its impact, and the ease of doing business in the energy sector.Arrmanatha asserted that Indonesia had a strong commitment to move toward a clean and sustainable energy system as reflected in the country’s General National Energy Plan (RUEN). Read also: Geologic time: Indonesia’s geothermal dreams deferred for 5 yearsIndonesia is also one of the countries with the largest gas and geothermal reserves in the world, as well as other energy sources such as wind, ocean waves, solar heat and biomass.”Another important thing is our political stability and the government’s commitment to create a conducive investment climate and increase the ease of doing business.”In his Tuesday presentation, Minister Arifin conveyed the opportunities and challenges of energy development, especially renewable energy in Indonesia.The minister said the COVID-19 pandemic had caused a decline in global demand for oil and gas, which in turn made it harder for the country to achieve its target of a new and renewable energy mix.On the other hand, the pandemic had presented an opportunity for the country to start implementing low-carbon development and reducing greenhouse gas emissions, he added.Topics :