The Government of the Republic of Indonesia continues to strengthen economic relations with the People's Republic of China (PRC) to encourage the influx of quality investment into the country. During a courtesy call by a PRC business delegation in Jakarta on Thursday (23/7), the Coordinating Minister for Economic Affairs, Airlangga Hartarto, invited business actors from the Land of the Bamboo Curtain to expand their investment scope in various strategic, high-value-added sectors.
Airlangga reassured investors by referring to data from the Japan External Trade Organization (JETRO) which shows a positive business climate in Indonesia. According to the report, around 70 percent of foreign companies investing in Indonesia managed to record a profit. This is strong evidence that the country offers great potential profit for global business actors.
The trade relations between the two countries are currently supported by regional trade agreements such as the ASEAN-China Free Trade Area (ACFTA) and the Regional Comprehensive Economic Partnership (RCEP). This partnership is reflected in the high value of bilateral trade, which ranges between USD 154 billion and USD 160 billion. Indonesia's leading commodities sought after by the Chinese market include nickel, ferroalloys, coal, and palm oil.
To welcome investor interest, the Indonesian government has prepared a series of competitive fiscal incentives. These include corporate tax exemption (tax holiday) of up to 100 percent based on investment value, tax allowance, and super tax deduction for industries focusing on research and development of human resources.
This strategic cooperation covers various cutting-edge sectors, including the automotive industry with the presence of Chinese manufacturers such as BYD and Chery, which currently dominate the local market. In the education sector, collaboration has been established with Tsinghua University in the Bali Special Economic Zone (SEZ). In addition, the government is also targeting partnerships in the digital economy sector, data center development, fiber optic infrastructure, and the semiconductor industry.
The Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, emphasized the government's commitment to maintaining the continuity of this comprehensive bilateral relationship. The government is determined to facilitate mutually beneficial partnerships in all sectors to accelerate sustainable national economic transformation.
