Indonesia remains key investment hub for Japanese

Jakarta (ANTARA News) - Indonesia, which is the most populated nation and the largest economy in Southeast Asia, remains one of main destinations for Japanese investment.

Indonesia has offered a number of advantages in terms of geographical location, manpower and rich natural resources, President Director of Japan External Trade Organization (JETRO) Jakarta Daiki Kasugahara said at a Japanese Investor Forum, held at the Indonesian Investment Coordinating Board (BKPM) here, on Monday.

These advantages have attracted Japanese investors to Indonesia, he added.

"Since 2009, more companies have entered the Indonesian market. During the first semester of 2016, Japanese investment flow reached US$2.8 billion or 20 percent of the total foreign investment," he noted.

Japan is interested in investing in automotive, food and beverages, logistic goods, household equipment, information technology and retail.

Indonesias commitment to the ASEAN Economic Community (AEC) and the discussions on the ratification of the Trans Pacific Partnership (TPP) are considered crucial points for Japanese investment global markets.

Therefore, Japan lauded the efforts of the Jokowi Administration in improving the countrys investment climate.

"We have also given quite a high rate, including the deregulation efforts and economic policy packages that have been issued and the revision of the Investment Negative List. We hope the deregulation continues to upgrade Indonesias competitiveness," he said.

In the meantime, the government has been trying to boost the economy through investment and exports, according to Ikmal Lukman, promotion director of BKPM.

Besides, the government is also determined to change the economic growth pattern, that has so far been dominated by household consumption, into a more productive sector, he added.

"Our investment target is Rp3,500 trillion for five years (from 2014 to 2019) or a double from the target of the previous five-year period," he noted. (*)