143 Foreign Companies Want to Relocate to Republic of Indonesia, Land to be Borne by the Government

Jakarta

The government revealed that there are 143 foreign or multinational companies that have the potential to relocate or move their factories to Indonesia. If all of them do move, the government will be responsible for the matter of land acquisition.

The government said the guarantee of land acquisition for investors who build factories in the country is an effort to facilitate investment in the country.

The Investment Coordinating Board (BKPM) noted that there were 143 foreign companies that had the potential to relocate or move their investment to Indonesia. Of this potential, three companies have realized it.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the relocation of investment was the impact of the Corona pandemic that occurred in China. According to him, many multinational companies have decided to reallocate because the global supply chain is shaken by Corona.

“China is a major importer and exporter for many countries. The policy taken by China to suppress the spread of the COVID virus caused the global supply chain to be severely shaken. Business operations on a global scale were hampered and revenues decreased,” said Airlangga as a keynote speaker at the HSBC Economic Forum. , Wednesday (16/9/2020).

Airlangga said that the Corona pandemic provided many valuable lessons, especially for Indonesia. Lessons that can be taken about global supply chains that cannot be concentrated in one country.

Currently, Airlangga said, many multinational companies have started relocating their investment from China to Asian countries, especially the ASEAN region.

“This could be an opportunity for Indonesia to replace China as an investment destination for a new global supply chain hub,” he explained.

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