Indonesia Announces Revision Of Negative Investment List, And Enterprises Must Be Cautious In "Gold Rush"

Indonesia, the largest economy in Southeast Asia, has announced that it will revise its negative investment list and raise the level of foreign direct investment in airports, pharmaceutical industries, power plants and toll roads, so as to attract more foreign investment. P

MahendraSiregar, chairman of the Indonesian investment Coordination Bureau, said that under the new policy, the government will increase the foreign investment ceiling from 75% to 85%, and the advertising industry will increase from 49% to 51%.

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< p > Indonesia is a large country such as liquefied natural gas, palm oil, coal and so on, a href= "http://www.91se91.com/news/index_p.asp" > resource export < /a > big country. It is also the largest and fastest growing consumer market in Southeast Asia, so it has huge investment potential.

According to the insiders, Indonesia has further increased its openness to foreign investment in order to inject more vitality into its economic growth.

This is good news for Chinese companies who want to invest in Indonesia, but Chinese companies must consider it carefully.

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< p > < strong > curb economic slowdown < /strong > /p >

< p > > a href= "http://www.91se91.com/news/index_p.asp" > Indonesia < /a > has sufficient natural resources, a large number of young people with increased skills and incomes, and an important international position in the ASEAN region.

The research report released in September 2012 by the McKinsey Global Institute said Indonesia is on the way to catch up with Germany and Britain and is expected to become the seventh largest economy in the world in 2030.

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< p > but since 2013, Indonesia's economic growth has slowed down and investment growth has slowed down.

In the third quarter of 2013, the country's economic growth rate was 5.62%, slowing down for five consecutive quarters.

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According to the data released by < p > Indonesia a href= "http://www.91se91.com/news/index_p.asp" > investment Coordination Committee < /a >, in the third quarter of 2013, Indonesia's total domestic and foreign investment amounted to 100 trillion and 500 billion shield, an increase of 22.9% over the same period last year, a two percentage point slower than the second quarter growth rate.

Among them, the 67 trillion shield of foreign investment, an increase of 18.4% over the same period last year, has become the lowest quarterly increase since the third quarter of 2011.

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< p > Li Guanghui, a researcher at the Ministry of Commerce, pointed out that in Southeast Asian countries, the policy system of utilizing foreign capital in Indonesia is relatively sound, and its infrastructure is stronger than that of Kampuchea and Vietnam. The short board lies in the extent to which foreign investment can be used to radiate the entire Southeast Asian market.

Li Guanghui said: "lowering the threshold to let more foreign capital come in can add vitality to the economic development of our country."

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Yuan Bo, deputy director of the Asia Africa Research Institute of the Ministry of Commerce, told reporters that there were other considerations in Indonesia's move, too. P

The tightening of quantitative easing policy in the United States will lead to a global outlook for developing countries. The hot money may flow out of Indonesia and must be prepared early.

In addition, as the core country of ASEAN, Indonesia has been actively promoting the construction of ASEAN community, and the liberalization of investment is also needed to increase domestic openness.

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< p > < strong > good news must be cautious. < /strong > /p >

Statistics from the Indonesian investment Coordination Committee (P) show that since the establishment of a strategic partnership between China and Indonesia, China's investment in Indonesia has continued to grow rapidly, and non-financial direct investment in 2012 has reached 600 million US dollars.

But at present, China is only the thirteenth largest source of investment in Indonesia. Compared with China's total economic volume, China still has much room for growth.

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P, August 2013, the Indonesian investment Coordination Committee said it hoped China would increase its investment in Indonesia, and Indonesia would also formulate corresponding preferential policies, including making 5 year tax exemption policies for investors, providing convenient conditions for examination and approval, setting up special economic zones for Chinese investors and allowing their products to be sold in Indonesia.

Indonesia hopes that China's investment in Indonesia will reach 1 billion ~20 billion a year, becoming Indonesia's fifth largest source of investment.

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"P >, therefore, Indonesia's further opening up of foreign investment is good news for all countries.

"The extra cake should still be striving for it".

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< p > Yuan Bo reminds us that although Indonesian policies are more open to foreign investment, there are still some practical difficulties for Chinese enterprises to enter Indonesia.

"Indonesia's industrial parks are not built by local governments or investment companies, but are invested by enterprises themselves. Therefore, the initial investment is larger. Shipping is monopolized by several big companies, and the logistics cost between the islands is relatively high, which are factors that Chinese enterprises need to consider carefully."

Yuan Bo said.

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< p > in the specific industry, after the financial crisis of 1998, Indonesia's opening to the financial market has been more prudent. Chinese banks want to go to Indonesia to "gold rush" more difficult; most of the space of the manufacturing industry has been occupied by Japanese funded enterprises; from January 2014, Indonesia will implement the new mining law, prohibit the export of raw ore, require ore to be processed in Indonesia, and the cost of foreign-funded enterprises will also rise sharply.

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