Minister Airlangga has also offered some investment options for the company, such as Kendal Industrial Park, Central Java, boasting its vast area and skilled workforce.
Minister of Industry Airlangga Hartanto said that there are a number of industry players from China who want to invest in Indonesia. One is Jiangsu Dongqun Investment Holding Group Co., Ltd, which plans to develop a textile industry and textile products (TPT) with an investment of USD 100 Million.
“We certainly welcome the interest of Jiangsu Dongqun Investment Holding Group Co., Ltd who wants to invest in Indonesia. We also have to tell them few options such as investment locations in the Industrial Area Kendal, Central Java, considering there are still vast land and availability of skilled labor, “said Minister of Industry in Jakarta, Monday (5/9).
This statement came as a result of his working visit, when accompanying President Joko Widodo to the People’s Republic of China (PRC) few days ago to attend the G-20 Summit in Hangzhou. In addition, Airlangga also became a guest speaker at the Indonesia Business Forum in Shanghai.
The minister also revealed that the company had a meeting with the management of Jiangsu Dongqun Investment Holding Group Co., Ltd. in Shanghai. On that occasion, Minister of Industry, accompanied by Director General of Security and Access Development Industry (KPAII) Ministry of Industry, Harjanto and Chairman of the Chamber of Commerce and Industry (Kadin) Indonesia Rosan Perkasa Roeslani.
“We asked them to be able to work together with a local partner,” said Airlangga. Meanwhile, he added, the Jiangsu Dongqun Investment Holding Group Co., Ltd was asked about the investment incentives as well as the availability of energy for the textile industry.
The minister explained that the Indonesian government has deregulated economic policies to reduce rules that may hinder the development of industry and business in Indonesia. Until now, a total of 13 packages of economic policies that have been issued.
“The government is also considering to make gas prices more competitive for the industry, including the textile sector. This is aimed at improving the competitiveness of the industry,” he said. In addition, Airlangga added, for an industry that qualify will be given special incentives such as tax holidays, tax allowance and exemption from import duties for certain industries within the framework of the investment.
The minister also said that, in addition to Jiangsu Dongqun Investment Holding Group Co., Ltd who want to invest in Indonesia, China Railway Construction Corporation (CCRC) has also agreed to establish a mechanism of cooperation with the Ministry of Industry to develop human resources and industrial competitiveness of both countries in the near future , CRRC is an industry engaged in the manufacturing sector as well as construction services fast trains, bridges, tunnels and other infrastructure projects.
China Investment Development
Meanwhile, Harjanto said that the investment is one of the instruments that contributed immensely to the national economy. In the second quarter of 2016, foreign investment reached USD 8.01 billion, an increase of 49.11% compared to the same period in 2015.
“In the second quarter of 2016, China has been committed to 271 projects in Indonesia with a total investment value of US$ 925 million that his main contribution of the industrial sector steel, machinery, electronics, food, cement and some other strategic industries,” he said.
Harjanto also said the increasing Chinese investment in Indonesia is expected to bring positive effects on the national economy, and could also increasing the competitiveness of domestic industries.
Some Chinese investment in Indonesia, which has been running among others PT. Sulawesi Mining Investment, which operates in the field of mining of nickel with a capacity of 300.00 tons per year with investment value of US$ 636 million in Morowali Industrial Park, Central Sulawesi. PT. Sulawesi Mining Investment is the first nickel smelter in Indonesia that use technology Arc Furnace Rotary Kiln.
Furthermore, PT. Virtue dragon Nickel Industry engaged in ferronickel processing Konowe, Southeast Sulawesi with an investment of US$ 5 billion with a capacity of 600,000 tons per year.
“There is also, Anhui Conch Cement Company engaged in the cement industry with a total investment of US$ 5.7 billion and a production capacity of 20 million tons per year,” said Harjanto. In Indonesia, Anhui Conch Group will build five integrated plants and one grinding plant in South Kalimantan, Banten, North Sulawesi, South Sulawesi and West Papua.
At the Indonesia Business Forum in Shanghai, Minister of Industry, Airlangga also offers four industrial estates in Indonesia, which has been prepared in cooperation with foreign investors, including Kawasan Industri Dumai, Riau, Industrial Area Industrial Java Integrated Industrial and Ports Estate (JIIPE) in Gresik, East Java, Industrial Estate Kendal, Central Java, and Kaltim Industrial Park in Bontang, East Kalimantan.
“We also invite Chinese investors to take advantage of investment opportunities in Indonesia such as downstream industrial minerals, coal gasification, and petrochemicals, agro-based industry, shipbuilding and automotive components,” said Airlangga. (*)