ASEAN's largest economy shares secrets to attracting foreign investors

Speaking to the press, Indonesian President Prabowo Subianto said on November 14 (local time) that Indonesia will be an attractive investment destination that cannot be missed by Asia- Pacific investors.

Batam is Indonesia's first SEZ, located on the Strait of Melaka, the second busiest sea route in the world after the Strait of Hormuz in the Persian Gulf. (Source: viettonkinconsulting)

Indonesia has affirmed that it will create a favorable investment environment through preferential policies and plans to expand more Special Economic Zones (SEZs) to attract Asia- Pacific investors.

“We will establish more SEZs as new economic growth centers. Any investors who wish to set up factories in the SEZs can get special treatment, from corporate income tax deductions to easier licensing. We are moving forward with more incentives,” Mr. Prabowo said.

We have established a number of SEZs. We will create more of these SEZs to invite investors with the most modern, leading and advanced technology.”

President Prabowo Subianto said that Indonesia currently has 24 SEZs across the country and they are operating effectively, creating sustainable economic values. Foreign investors will find potential opportunities when investing in Indonesia to improve the production value chain in many fields. Mr. Prabowo emphasized that Indonesia is determined to industrialize through a policy of developing downstream policies, taking advantage of the potential of diverse and abundant resources.

To realize its goal of becoming one of the leading global economies, Indonesia has outlined a comprehensive strategy. In which, foreign direct investment (FDI) plays an important role in unlocking Indonesia's potential.

In fact, Indonesia’s FDI hit a record high of $47 billion in 2023. As of the first quarter of 2024, FDI had reached $12.5 billion. This figure was 15.5% higher than the same period last year and accounted for nearly 51% of total investment from foreign and domestic sources.

According to David Sumual, Chief Economist of Bank Central Asia (BCA), South Korea is on track to become one of the largest investors in Indonesia and could be on par with China and Japan in the long term. South Korean investments are quite diversified as they are not only poured into the electric vehicle ecosystem – a major focus of the Indonesian government – ​​but also into other manufacturing sectors.

Singapore and China were the largest investors in Indonesia in the first half of the year with capital of 8.9 billion USD and 7.7 billion USD, respectively.

Source: https://baoquocte.vn/nen-kinh-te-lon-nhat-asean-chia-se-bi-quyet-thu-at-nha-dau-tu-nuoc-ngoai-293950.html