Jakarta Globe is reporting that many businesses in Hong Kong, across a range of sectors and industries, are keen to expand to Indonesia despite upcoming elections, showing that this is having little effect on investors’ appetites, according to the region’s trade body representative.
Government data shows that Hong Kong has never left the top four rankings for Indonesia’s largest foreign investors over the past years. It is likely that more Hong Kong investment will come to Jakarta in the future, say Jakarta Globe.
Kevin Chiu, the director for Indonesia at the Hong Kong Trade Development Council (HKTDC), said that businesses had been asking how they could set up a company in Indonesia.
According to Kevin, businesses across the globe today have their eyes on ASEAN. Indonesia, which is home to the ASEAN’s largest population, amounting to over 270-million people, is a high-potential market that Hong Kong does not want to miss out on.
While some businesses may be putting their investments on hold due to the election in February, there are others who remain aggressive.
“We receive a lot of inquiries from Hong Kong companies who wish to invest in Indonesia. Some want to learn about the new capital project [Nusantara], but many are interested in setting up companies [here],” Kevin told the Jakarta Globe in Jakarta on Wednesday (6/12/23.)
“And setting up a company takes a long time. Even though we will have the presidential election next year, it is not stopping the appetite and interest of companies to invest in Indonesia. It is just a matter of schedule,” Kevin said.
Kevin told the Jakarta Globe that these interested businesses came from many sectors.
“Some are from the energy sector. For example, one company is very prominent in manufacturing solar panels and glass products,” he said.
Kevin was referring to glassmaker Xinyi Glass, which had agreed to invest USD 11.6-billion to build glass and solar panel manufacturing facilities in Rempang Island, say Jakarta Globe.
“There are other companies from the manufacturing sector. Toys manufacturing, clothing. But this one is a traditional OEM, original equipment manufacturer. There are also many service companies, such as law and accounting firms, that want to help foreign investors come to Indonesia,” Kevin said, without revealing their names.
Jakarta Globe says the government reported that Hong Kong had been among Indonesia’s largest sources of foreign direct investment (FDI). In 2021, Hong Kong managed to surpass China as Indonesia’s second-largest foreign investor. Hong Kong’s investment in Indonesia totaled USD 4.6-billion that year, just behind first-place Singapore who had investments worth USD 9.4-billion.
Source: Jakarta Globe
