BKPM to open investment promotion center in China

JAKARTA. The Investment Coordinating Board (BKPM) plans to open an Indonesian Investment Promotion Center (IIPC) in China in the second semester of this year as part of its efforts to attract more Chinese investments.

"At this moment, we are coordinating with the Foreign Ministry to arrange a permit and find a location for the IIPC in China," BKPM Deputy Chairman for Promotion Himawan Hariyoga said here on Tuesday (3/3).

Hariyoga noted the IIPC most likely would not be located in Beijing but in some other major city such as Guangzhou.

"The office need not be in Beijing as our embassy is already situated there," he added.

The plan to set up an IIPC in China has been based on interest shown by several Chinese companies to invest in Indonesia.

BKPM Chief Marketing Officer Ikmal Lukman remarked that establishing an IIPC has been aimed at increasing Chinese investments in Indonesia from 7 percent in 2014 to around 40 percent.

"Chinese investors' contributions can even be equivalent to the average national investment of 46 percent," he added.

According to Lukman, the BKPM is in the process of approving investment proposals worth US$200 million from China.

"A Chinese investor is interested in investing in the automotive industry. I think the investor is quite serious because he has met me twice, and the BKPM chief has already inspected the potential location for the firm," he revealed.

The BKPM has eight IIPCs overseas: in New York, London, Sydney, Seoul, Tokyo, Taipei, Abu Dhabi, and Singapore.

The agency is also considering opening IIPCs in Germany and India.

The BKPM has set itself the target of issuing in-principle permits to Rp5,864 trillion worth foreign investments and Rp2,158 trillion domestic investments to meet the investment target of Rp3,500 trillion between 2015 and 2019.