ASIATODAY.ID, JAKARTA – Coordinating Minister for the Indonesian Economy, Airlangga Hartarto, stated that as many as 15 global investors have shown interest in investing in the textile industry and textile products in Indonesia.
Investors are ready to relocate their factories from China to Indonesia.
“They plan to relocate their factory to Indonesia because most of them operate in China. “The current global situation and policies from buyers in the United States require China Plus One to open up big opportunities for Indonesia,” said Airlangga Thursday, October 31 2024.
China Plus One is a company strategy in China looking for alternative countries to expand the market and reduce dependence on the domestic market. This is done to maintain productivity in the face of global economic changes.
Airlangga said these investors wanted to get optimal service in Indonesia.
In this context, Indonesia can emulate Vietnam, which has created a supportive investment climate and facilitated exports to America and Europe. Therefore, the government continues to strive to complete negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU CEPA).
“This will be easier to achieve if we sign IEU CEPA. “For example, Vietnam already enjoys 0% export tariffs to Europe and America, while Indonesia is still subject to import duties in the range of 10% to 20%,” he explained.
Airlangga has not detailed the investment value that investors will invest in Indonesia. Currently, these investors are still conducting studies regarding investment prospects in Indonesia.
“There are 15 investors, but the commitment value is not yet available because they are still in the survey stage,” added Airlangga.
With investment plans in this labor-intensive sector, the government needs to immediately revitalize the sector, including increasing productivity by focusing on research and development.
“Productivity and industrial competitiveness must be increased, both in local and global competition,” said Airlangga.
He also emphasized that efficiency and the use of the latest technology are the keys to optimal industrial growth.
“Industries that are more efficient in the use of energy and technology and are able to produce greater output will have higher competitiveness,” he said. (AT Network)
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