"We hope that Indonesia is chosen by Beiersdorf (a German company) as a hub for the ASEAN market," BKPM's deputy for investment promotion, Nurul Ichwan, said here on Tuesday (May 30).
Indonesia is among the countries selected by the German investor because it has met the standards, he added.
On Tuesday, BKPM inaugurated Beiersdorf's factory expansion in Singosari, Malang district, East Java.
The factory has been operating in Indonesia since 1981 and needed to expand to support its business activities.
Ichwan said that investors from Germany are “one of the most resilient in the world.”
German investors tend to find it difficult to expand their businesses to other countries, he noted. However, Indonesia has managed to become one of their investment destinations.
"So, if German companies are investing in Indonesia, it means that the country has a high level of confidence. We are at a certain level of confidence," he added.
He said he expects German investment in Indonesia to become a reference for other global companies in investing in the country.
"German companies will be a reference to other companies, especially those from Europe (in investing in Indonesia)," he added.
BKPM is committed to assisting every process in Beiersdorf's business expansion in Indonesia so that it would make the country a hub of its products, Ichwan said.
He also expressed the hope that local governments will support the central government's commitment to providing easy and quick business licensing services.
With easy licensing, more foreign companies will be attracted to invest, he said.
Production center director of Beiersdorf Indonesia, Enri Gausman Lubis, said the total investment for the factory expansion reached 26 million euros (Rp500 billion).
Translator: Vicki F, Kenzu
Editor: Tia Mutiasari
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