"Data from the Investment Coordinating Board (BKPM) shows that 143 companies have planned to reallocate investment to Indonesia, with the potential of more than 300 thousand workers being absorbed," the minister noted at the HSBC Economic Forum event in Jakarta, Wednesday.
Hartarto stated that the reallocation plan indicated that the COVID-19 pandemic had offered valuable lessons that supply chains of goods could not be centralized in one country.
"Currently, several multinational companies are starting to relocate from China to other Asian countries, especially the ASEAN," he noted.
The minister believes Indonesia can seize this opportunity to replace China as an investment destination for new supply chain relationships in the global market.
However, Hartarto did admit to the existing quite high risk of uncertainty this year in the wake of which the Indonesian economy faces both external and internal challenges.
The minister explained that pressure from the external front was a global uncertainty that had its roots deep-seated in the COVID-19 pandemic, thereby leading to a persistently dismal global economic forecast.
Meanwhile, on the internal front, this pressure arises in line with the global economic slowdown, as was reflected in Indonesia’s second-quarter growth contracting 5.32 percent.
Hence, Airlangga confirmed that the government was currently preparing various policies to tackle these external and internal pressures.
The minister highlighted the steps and policies being pursued by the government, including completing discussion on the omnibus bill on job creation with the House of Representatives (DPR) and compiling a list of investment priorities, including business areas that will receive tax and non-tax facilities.
"Through concrete and appropriate policies, Indonesia will be able to overcome the challenges being faced in 2020. Together, we hope that in future, the Indonesian economy will grow stronger and more successful," he added.
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