Coordinating Minister for the Economy, Airlangga Hartarto, has announced plans to attract foreign investors to revitalize labor-intensive industries in Indonesia, aimed at capitalizing on opportunities from investors looking to relocate their operations here.
“Foreign investors are considering relocating to Indonesia, especially given the current global situation and changes in American buyer policies that require them to find a ‘China plus one’ option,” Airlangga told a press conference on Thursday, October 31, 2024.
He identified Indonesia as a leading candidate among ASEAN countries for these investments, particularly after political instability in the South Asian country of Bangladesh has pushed investors to focus on alternatives, like Indonesia and Vietnam.
“We need to effectively seize this opportunity,” he added.
Airlangga noted that approximately 15 potential investors are interested in exploring and enhancing the labor-intensive and textile sectors in Indonesia.
He emphasized that these new investors desire equitable treatment for Indonesia and Vietnam in markets such as Europe and the United States, achievable through the signing of the Indonesia-European Union Comprehensive Economic Partnership Agreement (EU CEPA).
Furthermore, he stressed the importance of revitalizing the labor-intensive sector to improve productivity, given the intense competition in both national and global textile industries.
“Efficiency in energy use, the latest technology, and higher output will be key determinants in this competitive landscape,” he concluded.
