Chinese Firms Responds to 2024 Election Results, Optimistic About Investment Benefits
Reported by: Liu Setiawan
Jakarta, March 16, 2024/Indonesia Media – Chinese firms said on Saturday there were two things which affected prospective investments in Indonesia, the revocation of the COVID-19 pandemic status per June 2023 and 2024 Presidential Election Results with Prabowo-Gibran clinching victory, while also responding, learning and reviewing regulatory updates. “prospective investors call on the presidential candidate, Prabowo Subianto after clinching victory (with his running mate Gibran Rakabuming Raka) to continue some programs of development which were accelerated by President Jokowi (Indonesian President, Joko Widodo). But we also need to know, learn some regulations. We are optimistic about the benefits of investment in the future,” said the CEO of PT Nusaraya Business Services, Roy Wong during Indonesia Manufacturing Practical Forum in Menara Batavia.
There was a lot of enthusiasm among participants for interactive discussion during the forum, exploring the Indonesian economy especially after the end of Covid pandemic and 2024 election. By the time the Indonesian government revoked the covid status, Chinese firms continued to explore the prospects of the Indonesian manufacturing industry. In November 2023, the Indonesian government issued regulations tightening the flow of imported goods. The regulations have been outlined in the revised Minister of Trade’s Regulation (Permendag) Number 25 of 2022 concerning import policies and regulations. The government has set a 3-month transition period to ensure the smooth implementation of regulations tightening the flow of imported goods. The revised ministerial regulation changes the rules on imports from post-border to border for 8 commodities: bags, electronics, traditional medicines and health supplements, cosmetics, other finished textile goods, children’s toys, footwear, and ready-made clothing. “The regulation affected Chinese firms, especially the import quotas, the application of Indonesian standard (SNI) and the mandatory for various products. Besides that, we also have to deal with difficult Indonesian Food and Drug Authority (BPOM)’s regulation on business licensing. Therefore we chose practical manufacturing for discussion,” said Roy Wong
Besides that, Chinese firms and Nusaraya suggested that Indonesian domestic developer companies would change the business model by offering more ready-to-use standard factory buildings, either for rent or sale. So far, developer companies tend to offer industrial land lots for purchase, but not ready-to-use. “Perhaps, they can change the business models by offering ready-to-use standard factory building for Chinese manufacturing companies. We need more (ready-to-use buildings) than land lots for the future,” said Roy Wong. (LS/IM)
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