China enhances investment support for Indonesia's industrialization-Xinhua

China enhances investment support for Indonesia's industrialization

Source: Xinhua| 2024-05-17 19:35:45|Editor: huaxia

by Nurul Fitri Ramadhani

JAKARTA, May 17 (Xinhua) -- Indonesia and China continue to strengthen investment cooperation to support the development of Indonesia's industrialization.

On Thursday, Indonesia's Ministry of Industry and China's Ministry of Commerce held a bilateral meeting in Jakarta, discussing the Chinese investment coming to Indonesia and its realization for the targeted industrial sector.

Director General of Resilience, Regions and International Industry Access at the Indonesian Ministry of Industry, Eko Cahyanto, said after the meeting that China remains committed to encouraging investment in Indonesia in an effort to boost the supply chains of both countries, so that both could be more competitive in the global market.

He hopes that investment from China could help push Indonesia's industrialization from the downstream to upstream sectors and thus increase the foreign exchange of the Southeast Asian country.

"We continue to foster good relations with the Chinese government and push stronger business cooperation between Indonesian and Chinese business players not only in terms of business development, but also in facilitating the supply chain," Cahyanto said.

Cooperation between Indonesia and China has been stronger than ever in the last two decades. In 2023, China became Indonesia's second-largest investor after Singapore. The manufacturing sector has become the largest destination for Chinese investment in Indonesia.

"We encourage new investments from China to come and get local partners in Indonesia in order to strengthen our investment realization and operationalization," Cahyanto said.

The Indonesian government has repeatedly said that the country is currently working for its domination in the nickel market. This success cannot be separated from the support from Chinese foreign direct investment (FDI), which finances supporting infrastructures needed by the nickel processing industry, particularly through construction projects.

The Morowali Industrial Park in Central Sulawesi province is such a big project with heavy Chinese investment and related to the nickle industry.

Chinese investors in electric motorbikes are also currently coming to Indonesia, spurring the country's electric vehicle (EV) market. Chinese electric motorbike producer Yadea has just started to build its factory in Indonesia.

Deputy for Investment Cooperation at Indonesia's Ministry of Investment Riyatno said Chinese investment has helped Indonesia in increasing the capacity of its domestic industry and infrastructure, especially in downstream sectors that create added value.