Take advantage of Chinese PM Visit, Kadin and 300 Entrepreneurs Discuss Cooperation

INDUSTRY.co.id - Jakarta, the Indonesian Chamber of Commerce and Industry (Kadin) together with the China Council for the Promotion of International Trade (CCPIT) held the Indonesia-China Business Summit, and attended 600 invitations of which 300 were national entrepreneurs.

This event is part of the State Visit of Chinese Prime Minister Li Keqiang to Indonesia which brings a mission to strengthen bilateral relations in the economic field.

China itself is Indonesia's largest trading partner where in 2017 our total trade reached 58.8 billion dollars. Despite our overall trade deficit, the share of non-oil and gas exports grew to USD21.32 billion or 13.94 increase compared to the same period in 2016 which was recorded at only USD15.12 billion or about 11.45 percent of the export share.

In terms of investment, China last year was also the third largest investor with a total investment of USD 3.3 billion in 1977 project. It is worth noting that investment from China is one that has increased significantly in the last three years.

In 2015 their investment is recorded only USD 1 billion then in 2016 up to USD2, 6 billion. This means that in three years the average increase in their investment increased almost 2x per year. These developments show the strategic value of closer economic cooperation with them.

Chairman of Kadin Rosan P. Roeslani said China is an important partner in improving the national economy. Its government program to knit back the modern Silk Road Initiative (BRI) silk line, which they are currently undertaking to reconnect the plains and oceans from Europe to Southeast Asia provides tremendous opportunities, especially for the countries of the immediate region.

"It is predicted that the funds needed for this initiative will reach USD 4-8 trillion, and Indonesia with its geography and demographic conditions is a key point, therefore we should be able to attract investment from them for the benefit of our national economy," Rosan said in Jakarta (9 / 5/2018).

He added, considering we are racing with time in avoiding the upcoming mid-2025 midlle-income trap, investment acceleration must continue.

"With current global conditions, attracting foreign investment will be more difficult, so we need to find key partners and focus on getting closer to them," he explained.

Meanwhile, Shinta W. Kamdani as Vice Chairman of KADIN for International Relations added that we should be able to take advantage of the opportunities provided by the Belt Road Initiative.

"One of the things we can focus on is the development of the northern part of Indonesia that can serve as a bridge to ASEAN and Asia Pacific," said Shinta.

In addition to proactively offering investment projects, she added, we must also improve ourselves by continuing to carry out comprehensive structural economic reforms, from eliminating unnecessary bureaucratic processes, setting up licensing and tax systems, and improving basic infrastructure.

"The Chinese government is also planning to help poverty alleviation programs through cooperation with local entrepreneurs, the Indonesian Chamber of Commerce and Industry (KADIN) will set up a special task force to follow up on this," she added.

KADIN Indonesia believes that through Indonesia-China Business Summit, we can strengthen well-established trade and investment relationship and bring it to a higher level.

"In addition, the opportunity given by PM Li to national entrepreneurs also shows that China has a consistent view," she said.