The Indonesia Investment Coordinating Board (BKPM) promoted Indonesia's investment policies to government investment promotion agencies from China and nine ASEAN countries during the China-ASEAN Expo (CAEXPO) 2024. This initiative strengthened dialogue between businesses and investors from China and Indonesia, helping them understand Indonesia’s investment landscape. Speaking at the "CAEXPO Roundtable Meeting on Investment Cooperation" in Nanning, China, Deputy Head of BKPM Nurul Ichwan emphasized the importance of collaboration between ASEAN and China. Indonesia, as part of ASEAN, has proactively engaged in multilateral frameworks to enhance economic relations with key partners like China. Indonesia’s robust economy continues to grow at 5.05 % in Q2 2024, driven by a strong middle class, contributing 36.8 % to household consumption.
China has consistently ranked among the top five foreign direct investors in Indonesia. In 2023, China was Indonesia's second-largest investor, with total investments from 2019 to mid-2024 reaching USD 32.2 billion. BKPM encouraged Chinese investors to collaborate in five strategic sectors, including mineral processing, electric vehicles, renewable energy, healthcare, and the development of Indonesia's new capital, Nusantara (IKN). Additionally, Indonesia prioritizes human capital development, offering incentives like "Super Deduction Tax," allowing businesses to reduce taxable income by up to 300 % for R&D expenses. Nurul highlighted China's enthusiasm for improving the quality of labor in Indonesia through vocational training programs and R&D initiatives.
