He noted that South Korea's investment in Indonesia varied quite a bit, ranging from high-tech to labor-intensive areas. To this end, he expressed optimism that the cooperation would be improved in future.
"Hence, when asked about what kind of investment, I honestly appreciate South Korea's effort because their investment is not only high technology but also labor intensive," he noted at the Maekyung Indonesia Forum on the 50th Anniversary of Diplomatic Relations Between South Korea and Indonesia in Jakarta on Tuesday.
According to Lahadalia, several South Korean investments are quite significant, specifically in the automotive and electronics fields and then in the development of the electric battery ecosystem in the garment and footwear industry.
"Now that automotive has entered, I hope it can be improved. Moreover, in the electronic sector, I think soon South Korea's neighboring countries will be unable to compete with South Korean products in Indonesia," Lahadalia affirmed.
On the other hand, he also emphasized the strong commitment of President Joko Widodo (Jokowi) and South Korean President Yoon Suk Yeol to develop the electric vehicle (EV) ecosystem.
"President Jokowi had a meeting with President Yeol in Bali, and they both have a strong commitment to collaborate in the development of the battery ecosystem," he remarked.
In addition, the Indonesian Government will not hesitate to offer fiscal incentives to South Korean investors, who would invest in the country, Lahadalia noted.
"We can provide incentives in the form of tax holidays, tax allowances, or reductions in value-added tax (VAT) that can be borne by the state," he remarked.
Moreover, he noted that in future, investment licensing, as stated in the Job Creation Law, will accommodate investors interested to invest in Indonesia under the Online Single Submission (OSS) system.
He reminded that licensing is only done through the Ministry of Investment/BKPM. He drew attention to this aspect since several South Korean investors were working with local partners regarding licensing issues.
"Do not come to unauthorized partners. If anything happens, ask the ministry which has authority, including about fiscal incentives," he emphasized.
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Translator: Ade Irma J, Resinta S
Editor: Rahmad Nasution
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