BKPM asks Japan to increase export-oriented investment

BKPM asks Japan to increase export-oriented investment

BKPM Chief Bahlil Lahadalia (right) and Japanese Ambassador to Indonesia Masafumi Ishii (left) during a meeting in Jakarta, on Monday (Nov 11, 2019). (ANTARA/HO/BKPM)

We warmly welcome the new BKPM chief's hope. We are optimistic that investment cooperation with Indonesia will increase in the future
Jakarta (ANTARA) - Chief of the Investment Coordinating Board (BKPM) Bahlil Lahadalia has asked Japan to increase its export-oriented investment in Indonesia during a meeting with Japanese Ambassador to Indonesia Masafumi Ishii in Jakarta Monday. The BKPM chief made the request following up on a meeting between Indonesian President Joko Widodo and Japanese Prime Minister Shinzo Abe on the sidelines of the 35th ASEAN Summit held in Bangkok recently, member of the BKPM Investment Committee for Communication and Information Rizal Calvary Marimbo said in a written statement released Tuesday.

During the meeting, the two leaders discussed ways to increase investment in the development of infrastructure and human resources in Indonesia, he said.

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"We warmly welcome the new BKPM chief's hope. We are optimistic that investment cooperation with Indonesia will increase in the future," Ambassador Ishii said.

However, several problems related to regulations, licensing and taxation posed an obstacle to Japanese investment in Indonesia, he added.

Japan also directed its investment to neighboring countries which are more prepared to receive Japanese investment, he said.

Indonesia was once the number one destination of Japanese investment in the world. However, results of a survey revealed that Indonesia had been overtaken by Vietnam, India and China, he said.

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BKPM is in the process of making fundamental changes to improve the investment climate in the country, Bahlil assured in response to Ishii's complaint.

Japan is now the second-largest foreign investor in Indonesia after Singapore. Its investment in Indonesia in the past decade reached an estimated US$31 billion.

Contributions of Japanese companies to Indonesia's exports also increased to 24.4 percent from 18.1 percent.  

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