The government has begun to open the door wide for Chinese entrepreneurs to invest in Indonesia due to the impact of Donald Trump’s election as President of the United States, which is considered to be burdensome for the People’s Republic of China’s trade side.
“Later we will see the smeasures taken. But the China+1 policy has been around for a long time. So the only plus one is competing between Indonesia, Vietnam, and Thailand,” Airlangga Hartarto, Coordinating Minister for the Economy, said on Tuesday, December 3, 2024.
Faisol Riza, Deputy Minister of Industry, said that Indonesia is currently in an advantageous position after Donald Trump was elected as U.S. President because many entrepreneurs from China intend to invest and relocate their factories to Indonesia.
“There are many requests from Chinese entrepreneurs to meet with industry. We think they think it is better to move the industry to Southeast Asia, including Indonesia, so that exports to the U.S. do not suffer losses,” Faisol said.
Airlangga cited that the Value Added Tax (VAT) policy to 12 percent and the increase in the Provincial Minimum Wage by an average of 6.5 percent would not affect domestic investment as investors need to comply with existing provisions, including labor laws.
“Investment must comply with regulations including labor law. So they want to support policies that truly improve the welfare of workers,” he said.
