“The last two elections showed that there is a boundary that separates politics and economy. For Indonesia, politics do not influence the economic condition or the entrepreneurs’ interest in investing in Indonesia,”
Jakarta (ANTARA) - The Ministry of Investment/Investment Coordinating Board (BKPM) is continuing to make efforts to manage the perception of Singaporean investors regarding the political year of 2024.

Director of investment promotion for Southeast Asia, Australia, New Zealand, and the Pacific Region (AASP) at the ministry, Saribua Siahaan, said that this is crucial since Singapore is Indonesia’s biggest investor as well as Indonesia’s hub for global investment.

“Data has shown that the biggest amount of investment comes from Singapore,” he said in Jakarta on Thursday.

According to data provided by the ASEAN Secretariat General, Indonesia is the second-largest recipient of foreign direct investment (FDI) in Southeast Asia after Singapore.

If Singapore is a financial hub, then Indonesia can be a manufacturing hub where industrial processes take place.

“Another reason why investment from Singapore enters Indonesia is most likely because of our proximity; it is easy to communicate and collaborate in terms of capital,” he explained.

Global investors from China, the United States, Malaysia, and Australia invest in Indonesia via Singapore given its status as a financial hub.

Siahaan assured that during the leadership change in 2024, his side will assist investors, including those from Singapore.

The Ministry of Investment is coordinating with the Indonesian Embassy in Singapore through their representative office, the Indonesia Investment Promotion Center (IIPC), to disseminate the latest information, including the potentials that future investors could explore.

Siahaan said that it is understandable for investors to take the situation in 2024 into account before investing.

“We will convince investors that democracy is initially filled with debates. However, all candidates are committed to maintaining stability, a peaceful election, and a guarded investment. It is fine to have differing opinions, but the commitment to maintain the growth of investment is a must,” he added.

To provide a complete picture of Indonesia’s investment potential to Singaporean investors, the ministry will hold the 2024 Indonesian Investment Outlook in Singapore on Friday (December 8, 2023).

At the event, the Indonesian government will outline its strategies to maintain conduciveness in the political year.

It is hoped that the event will encourage Singaporean investors to invest in Indonesia.

Singapore is being targeted as an investment hub to help Indonesia reach potential investors from all over the world.

According to the Indonesian Ambassador to Singapore, Suryo Pratomo, in the eyes of Singaporean investors, Indonesia has promising potential.

This is on account of its better macroeconomic condition compared to Europe or the United States, a large market, abundant natural resources, and a workforce that consists of 150 million–180 million people.

“(Singapore) is faced with a workforce problem because the country is aging,” he noted.

Singapore’s investment interest is reflected by its total investment in Indonesia in 2022, which reached 13.3 billion US dollars. In January–September 2023, Singapore’s total investment in Indonesia was recorded at US$12.2 billion.

Singapore has also demonstrated its seriousness regarding the Indonesian market through the establishment of the Singapore Business Federation (SBF) representative office in Indonesia, which is in charge of informing Singaporean investors of the business potential in the archipelago.

Like in other ASEAN countries, Singaporean investors are also closely monitoring the change of leadership in Indonesia, the ambassador stated.

However, referring to the successful elections of 2014 and 2019, which greatly impacted the economic sector, Pratomo said he believes that Singapore’s investment trend in Indonesia will not change. Moreover, investment outside of Java is still going well.

“Entrepreneurs are looking at the long-term (potential) and how the investment is going. Then, if we are looking from the political point of view, the impact is not too big. We see that investment outside of Java is still going well,” he noted.

“In 2024, the national political agenda still needs to be in effect, but the economy should progress alongside it,” the ambassador said.

“The last two elections showed that there is a boundary that separates politics and economy. For Indonesia, politics do not influence the economic condition or the entrepreneurs’ interest in investing in Indonesia,” he added.

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Translator: Ade, Luthfia, Azis Kurmala
Editor: Arie Novarina
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