Red Carpet for American & Japanese Investors
In the midst of a global economic recession and a corona outbreak, there are 150 companies that will leave China. A total of 110 companies came from the United States (US) and 40 came from Japan.
"This is certainly a potential that we must capture and must be really prepared for. Other ASEAN countries must be competing to hold a red carpet for the 150 companies. Including India and Bangladesh," Industry Minister Agus Gumiwang Kartasasmita said in Jakarta yesterday.
The Minister of Industry said that there were a number of things that were in the spotlight for potential investors when they wanted to invest their capital in a country, including land and labor issues.
According to him, those two things are being handled by the government through the Work Creation Bill. "Prospective investors highly appreciate this work copy bill to create a conducive investment atmosphere," Agus said.
Currently, Agus continued, Indonesia also has fiscal incentives that can attract investors. Such as tax holidays, tax allowances, to super deduction tax.
Therefore, the Minister of Industry believes that Indonesia is able to become one of the destination countries for US and Japanese investment relocation.
Indef's economic researcher, Enny Sri Hartati said the relocation of investment from China should be a momentum for Indonesia to seriously improve various pro-investment policies.
"Investors already know that Indonesia is like a beautiful girl, but the problem is how investor interest in investing is realized. The investment interest must be immediately responded by stakeholders. The bureaucracy must be made uncomplicated and facilitate or meet the needs of the industry," Enny said.
Especially if you look at the data from the Investment Coordinating Board (BKPM), the realization of Foreign Investment (PMA) entering Indonesia in the first quarter of 2020 decreased by 9.2 percent compared to the first quarter of 2019.
Investment in the secondary sector which reflects investment in the manufacturing sector also continues to decline. In fact, at the beginning of the year many companies had begun to relocate their investments from China.
"If I'm not mistaken, there are around 34 US-based industries that have shifted their investments to Southeast Asian countries such as Vietnam, Malaysia and several other countries. But none of them have entered Indonesia," he said.
Therefore, Enny suggested that policy makers must really deal with the main obstacles in the investment sector. So that in the next period or wave, Indonesia could become one of the investment relocation destinations from China.
In attracting investment to enter, said Enny, there is no harm in imitating other countries. "If it's good, why don't we just copy and paste, it's more about the government's wishes, whether it changes or not," Enny said.
The government can copy the policies adopted by Vietnam in attracting investment into the country. The Vietnamese government provides ease of regulation for investment, more efficient export costs to infrastructure that is prepared to support the industry.
Indeed, the government has issued several investment-friendly policies. Starting from the Minister of Finance Regulation (PMK) Number 150 of 2018 concerning the Provision of Corporate Income Tax Reduction Facilities for innovative products.
Then, there is also a super tax deduction policy for research and development activities through Government Regulation PP No. 45 of 2019. However, from some of these incentives, only the super deductible tax incentive for vocational technical regulations has been issued.
Source: Rakyat Merdeka (25/06/2020)
"This is certainly a potential that we must capture and must be really prepared for. Other ASEAN countries must be competing to hold a red carpet for the 150 companies. Including India and Bangladesh," Industry Minister Agus Gumiwang Kartasasmita said in Jakarta yesterday.
The Minister of Industry said that there were a number of things that were in the spotlight for potential investors when they wanted to invest their capital in a country, including land and labor issues.
According to him, those two things are being handled by the government through the Work Creation Bill. "Prospective investors highly appreciate this work copy bill to create a conducive investment atmosphere," Agus said.
Currently, Agus continued, Indonesia also has fiscal incentives that can attract investors. Such as tax holidays, tax allowances, to super deduction tax.
Therefore, the Minister of Industry believes that Indonesia is able to become one of the destination countries for US and Japanese investment relocation.
Indef's economic researcher, Enny Sri Hartati said the relocation of investment from China should be a momentum for Indonesia to seriously improve various pro-investment policies.
"Investors already know that Indonesia is like a beautiful girl, but the problem is how investor interest in investing is realized. The investment interest must be immediately responded by stakeholders. The bureaucracy must be made uncomplicated and facilitate or meet the needs of the industry," Enny said.
Especially if you look at the data from the Investment Coordinating Board (BKPM), the realization of Foreign Investment (PMA) entering Indonesia in the first quarter of 2020 decreased by 9.2 percent compared to the first quarter of 2019.
Investment in the secondary sector which reflects investment in the manufacturing sector also continues to decline. In fact, at the beginning of the year many companies had begun to relocate their investments from China.
"If I'm not mistaken, there are around 34 US-based industries that have shifted their investments to Southeast Asian countries such as Vietnam, Malaysia and several other countries. But none of them have entered Indonesia," he said.
Therefore, Enny suggested that policy makers must really deal with the main obstacles in the investment sector. So that in the next period or wave, Indonesia could become one of the investment relocation destinations from China.
In attracting investment to enter, said Enny, there is no harm in imitating other countries. "If it's good, why don't we just copy and paste, it's more about the government's wishes, whether it changes or not," Enny said.
The government can copy the policies adopted by Vietnam in attracting investment into the country. The Vietnamese government provides ease of regulation for investment, more efficient export costs to infrastructure that is prepared to support the industry.
Indeed, the government has issued several investment-friendly policies. Starting from the Minister of Finance Regulation (PMK) Number 150 of 2018 concerning the Provision of Corporate Income Tax Reduction Facilities for innovative products.
Then, there is also a super tax deduction policy for research and development activities through Government Regulation PP No. 45 of 2019. However, from some of these incentives, only the super deductible tax incentive for vocational technical regulations has been issued.
Source: Rakyat Merdeka (25/06/2020)
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