15 Taiwanese Investors Plan To Relocate Factories, Requesting Ease Of Investment

Monday, 04 Nov 2024

By ferry@insightinnews.com Airlangga Hartarto, the Coordinating Minister for Economic Affairs, announced that about 15 investors from Taiwan are interested in relocating their factories to Indonesia. They will proceed once certain conditions are met. "Today, the Taiwan Textile Association visited and expressed their desire to invest in Indonesia, as some of them have already invested in Purwakarta. They have several requests," Airlangga told reporters at his office in Central Jakarta on Friday, November 1, 2024. The first request is to simplify the process of purchasing land in Indonesia. Airlangga suggested that these investors consider entering industrial zones. "I advised them to enter these zones because if they go outside, the environmental assessments take a long time, often two to three years just for land preparation. But if they enter the zones, it becomes easier since everything, including the assessments and land, is already settled," Airlangga explained. Secondly, the 15 investors requested access to green energy in Indonesia, as the demand for green energy is rising globally, especially in the high-end textile industry. Airlangga assured them that green energy sources are available domestically. "In terms of ESG compliance, the energy must be green. Green energy can come from gas, hydro, or floating solar, and all of these are available in West Java," he clarified. Fifteen investors who met with Airlangga expressed the need for competitive gas prices to support their operations. They complained about high gas prices, which can reach up to US$ 12 per MMBTU. "I mentioned that a price of US$ 9 per MMBTU is the industry average. If they are offered more than that, they should report it to the government, and then the government can contact PGN or others," he explained. Additionally, the investors are looking for profitable markets. They noted that the biggest profits currently come from investments in China and Vietnam, especially since Vietnam has trade agreements like the European Union Comprehensive Economic Partnership Agreement (IUE-CEPA) and the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP). Therefore, they want Indonesia to speed up the completion of IUE-CEPA and CPTPP. "If Indonesia can secure IUE-CEPA, they will even relocate from Vietnam to Indonesia," Airlangga stated.

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