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MACROECONOMICS - JAKARTA. The Indonesian Trade and Industry Chamber (KADIN) welcomes many global investors plans to invest in Indonesia. One of them is Tesla Inc., the US electric automotive industry, that plans to invest in Indonesia for Energy Storage System (ESS) project through the establisment of a gigantic power bank.
One of the largest automotive in the world restated its interests for making investment in Indonesia after it cancelled the plan two years ago.
The Head of KADIN, Arsjad Rasjid, disclosed, Indonesia currently has become one of investment destination country. For two latest years, or when the Covid-19 pandemic spread, the investment flow into Indonesia remained raising.
In 2020, the investment realization in Indonesia rose by 2.06% to Rp826.3 trillion compared to a year ealier (year on year/yoy). In 2021, it experienced 9.0% yoy growth to Rp901.02 trillion. In 2021, the foreign direct investment (FDI) booked the biggest yoy growth by 10% or Rp454 trillion. While, the Indonesian government is expected to realize investment of Rp1,200 trillion in 2022.
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“The chance for reaching that expectation number is possible, moreover there are two potential moments for Indonesia, whereas Indonesia becomes the G20 Presidency and Business 20 (B20). Indonesia is the only country of the South Asia Tenggara region that is capable to be the host of G20 and B20. So, this opportunity won’t be skipped for attracting investment in all fields,” Arsjad clarified on Monday (30/3/2022).
KADIN that has been appointed as the organizer for B20 will lead the forum. The priority of B20 is also in line with the priority theme of G20, namely the progress of innovation, inclusion, and collaborative growth.
Arsjad also said, the B20 forum will especially create Indonesia in having a chance to reach a trust from global communities and to raise an investment center in South East Asia region.
B20 is the most strategic event and dialogue forum because it brings together the G20 countries of the premium companies that own high credibility, so that they are capable to create investment in Indonesia. The investments which are mainly supported are based on innovation and collaboration for reaching the inclusive and sustainable economy growth.
Last year, some companies had announced based investment in Indonesia. For example, the consortium investment of Hyundai Motor Company-LG Energy Solution worth USD1.1 billion which is aimed to create the electric vehicle ecosystem.
This investment has even started by the building of the electric vehicle battery in Karawang, West Java. In this segment, the Indonesian government has also received an investing commitment from Hon Hai Precision Industry (Foxconn).
