Governor of Bank Indonesia (BI), Perry Warjiyo, extends an invitation to potential Japanese investors to consider opportunities in Indonesia in clean and clear projects and further strengthening partnership between the two countries.
He outlines five compelling reasons for Japanese investors to confidently invest in the archipelago. These reasons include a stable macroeconomic environment, high economic growth, ongoing structural reforms, the acceleration of digitalization in the economy and finance, and the development of inclusive and sustainable economic practices.
Governor Perry conveyed these points during the ‘Indonesia Investment Forum’ held in Tokyo, Japan, from November 6 to 7, 2023. The event, organized by the Ministry of Investment/Badan Koordinasi Penanaman Modal (BKPM), aimed to promote investment and trade.
“Enhancing collaboration is crucial as both countries face similar global challenges. Strengthening the partnership between Indonesia and Japan can be achieved, among other things, by increasing Japanese investments in Indonesia,” stated Perry.
BI and BKPM collaborated to facilitate business matching with investors for ten clean and clear (CnC) projects in Indonesia.
The clean and clear investment project is a project that has a feasibility study and has no obstacles in terms of legality, business permits and land so that it is ready to be funded and investors can invest directly.
These curated projects, spanning renewable energy, services, and healthcare sectors, were presented to potential investors and corporations in Japan.
Perry highlighted the substantial interest of Japanese investors in Indonesia, as evidenced by the signing of letters of intent (LoI) for several projects in the country.
To support the investment climate, stakeholders discussed various aspects, including the development of investments and the Indonesia-Japan local currency transaction (LCT).
The LCT, initiated in August 2020, is perceived as beneficial for facilitating trade and direct investment between the two countries.
Perry emphasized its potential to optimize currency usage, create more efficient exchange rates, deepen the local currency financial market, and simplify processes such as account opening and rupiah remittances in Japan.
The positive developments in the implementation of LCT align with the increasing trade transactions dominated by the manufacturing, agriculture, and mining sectors in both nations.