Trade

China’s Economy Slows, Indonesia Becomes a New Investment Destination

China’s economy in 2018 recorded a slowdown which grew 6.6%. This is caused by trade wars that occur between the United States (US) and China.

This condition can be called a challenge and an opportunity for Indonesia. Minister of Industry Airlangga Hartarto explained that Indonesia could take advantage of opportunities by offering industrial locations.

This happened because many companies in China began to look for business places outside of China. He said Indonesia was one of the destination countries for industrial relocation.

“We have seen, several companies that have global orders are looking for new location countries. They see Indonesia as a promising country because Indonesia is considered a democracy and a pro-business government,” Airlangga said at Green Office Park, BSD, Tuesday (12/3 / 2019).

According to him the type of industrial relocation is very diverse. For example the giant iPhone manufacturer Apple Inc has already opened the way to create an educational program titled Apple Developer Academy in Surabaya and Jakarta. This program provides an opportunity for young people to learn to be special programmers who develop applications on the iOS system. In fact, according to Airlangga, Apple has an education program only in several countries of the world.

Then, Airlangga explained that French tire manufacturers, Michelin, chose to expand their business in Indonesia, but the development was not done organically but through the acquisition process.

“Yesterday, Michelin company whose tire production in Indonesia chose not to grow organically but acquisition. Now this is an opportunity for the industry to grow,” he added.

Previously, Bank Indonesia China’s economy in 2018 recorded a slowdown which grew 6.6%. This is caused by trade wars that occur between the United States (US) and China.

This condition can be called a challenge and an opportunity for Indonesia. Minister of Industry Airlangga Hartarto explained that Indonesia could take advantage of opportunities by offering industrial locations.

This happened because many companies in China began to look for business places outside of China. He said Indonesia was one of the destination countries for industrial relocation.

“We have seen, several companies that have global orders are looking for new location countries. They see Indonesia as a promising country because Indonesia is considered a democracy and a pro-business government,” Airlangga said at Green Office Park, BSD, Tuesday (12/3 / 2019).

According to him the type of industrial relocation is very diverse. For example the giant iPhone manufacturer Apple Inc has already opened the way to create an educational program titled Apple Developer Academy in Surabaya and Jakarta. This program provides an opportunity for young people to learn to be special programmers who develop applications on the iOS system. In fact, according to Airlangga, Apple has an education program only in several countries of the world.

Then, Airlangga explained that French tire manufacturers, Michelin, chose to expand their business in Indonesia, but the development was not done organically but through the acquisition process.

“Yesterday, Michelin company whose tire production in Indonesia chose not to grow organically but acquisition. Now this is an opportunity for the industry to grow,” he added.

Previously, Bank Indonesia (BI) Governor Perry Warjiyo explained that there was an opportunity for China’s economic downturn to be industrial relocation, as Japan had done in 1980 and South Korea since the Asian crisis a few years ago. He added, Indonesia could carry out activities to add value to exports, for example by processing mines domestically and then selling them.

“We must not give up, even though we now export coal, nickel with its lands. We will try, now pull the smelter here,” he explained.

In addition, infrastructure development must also be pursued to the digital economy.

“This opportunity for the decline of the Chinese economy let’s capture the opportunities for various fields,” he explained.

Previously from the China Statistics Bureau data, it was stated that even though China’s economy was slow, China’s industrial sector still grew 5.7% or above expectations of 5.3%. Retail sales grew 8.2% in line with estimates. This economic slowdown occurred due to domestic demand. (kil/ara)

Detik.com

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