Chinese Investors Have Minimum Information About Indonesia

Jakarta (Antara Bali) - Head of the Capital Investment Coordinating Board (BKPM) Franky Sibarani has said Chinese investors have  limited information about Indonesia.  

"We could see from our talks with them  many prospective investors from China did not proceed after submitting their applications for principle license , not because they are not interested but more because they have little information about the business potentials in the country," he said here on Wednesday.

The minimum information is one of the reasons for the low investment realization ratio of China in the country, Franky Sibarani, who recently accompanied  President Joko Widodo on a visit to the world's second largest economy.

Another reason is that many prospective investors from China are in difficulty in finding good partners in the country, he added.

Some of the Chinese investors also express frustration with the lengthy licensing process  and red tape  and cheating they faced in the country. He said he had sought to convince them that the condition has improved , adding that he would form a team specially to facilitate Chinese investors.

"We also would continue to coordinate with our embassy  and the Economic Bureau there to process the opening of a BKPM representative office," he said.

He said BKPM is set to attract more Chinese investors hoping to improve their investment realization ratio in Indonesia. In 2005-2014, Chinese investment realization ratio was only around 7 percent, far below Singapore's 40 percent  and japan's 65 percent.

Earlier, BKPM said it was preparing the opening of an investment promotion representative office (IIPC) in China scheduled to be operational in the second quarter of 2015.

BKPM already has investment promotion representative office  in eight countries including the United States (New York), Britain (London), Australia (Sidney), South Korea Seoul), Japan (Tokyo), Taiwan (Taipei), Abu Dhabi  and Singapura. BKPM also plans to open one in Germany and  India. (WDY)