During a working meeting with the House of Representatives here on Friday, it was noted that Singapore is still the number one financial hub in the region, according to the minister, thus steering investors towards this hub to extend their investment into Indonesia.
"As of the first quarter of 2023, Singapore is still number one, second Hong Kong, then followed by China, Japan, the United States, Malaysia, South Korea, the Netherlands, and Australia," Lahadalia said.
He noted that many foreign investors who are attracted to put their money in Indonesia still centralize their financial activities in Singapore or other Southeast Asia countries.
Lahadalia said Singapore is still a financial and investment hub for investors to extend to Indonesia.
Some Indonesian businesses also put their money there, he added.
"This is a matter of introspection for us. I kept looking for the reason why they put their money there. It turned out that our financial center was not as good as Lagoon and Singapore," he said.
Therefore, he added, the government has issued Governmental Regulation (PP) No. 12 of 2023 concerning the Issuance of Business Licenses, Ease of Doing Business, and Investment Facilities for Business Actors in the Nusantara Capital City (IKN).
Lahadalia said the regulation will support the establishment of a financial center in the new capital city.
"Through PP No.12/2023, we facilitate a financial center development at IKN. (The concept) is similar to that of Singapore and Lagoon, the tax is very low," he said.
Lahadalia reported that Singapore's investment in Indonesia reached US$10.54 billion in 2022.
This amount rose 12.24 percent year-on-year, the highest since 2010, except 2013 when it ranked second.
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Translator: Ade J, Kenzu
Editor: Rahmad Nasution
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