Remarks of President of the Republic of Indonesia During the Inspection of Batang Integrated Industrial Zone and Relocation of Foreign Investment to Indonesia Tuesday, 30 June 2020 in the Batang Integrated Industrial Zone, Batang Regency, Central Java Province
Date 30 Juni 2020
Assalamu’alaikum warahmatullahi wabarakatuh.
Distinguished Ladies and Gentlemen,
My Fellow Countrymen,
Why do we open an industrial zone in Batang? There is only one answer. We want to create as many jobs as possible. We are aiming for creating employment. Therefore, I have already ordered relevant Ministers, Head of the Indonesian Investment Coordinating Board (BKPM) to provide the best services for companies relocating from China to Indonesia, including those from Japan, from (South) Korea, from Taiwan, from the U.S., or from any other countries. If there is any difficulty with permit processing, I have ordered the BKPM head to take care of it, from A to Z, so investors can feel catered to. This is very important.
Second, regarding land acquisition that has always been the issue. Earlier, I have asked several investors, for example, regarding land procurement in Serang and in Bekasi, “Is there a problem?” “No?” “Okay, go ahead.” However, for those facing land issues, we will back up the investors until the issues are resolved. For those who have not yet procured land for their facilities, you may use the Batang Industrial Zone as a location. We will provide approximately 4,000 hectares of land here and for the first phase, we will provide about 450 hectares in advance. Some directly give response, for example, South Korean industrial conglomerate LG wants to relocate tomorrow. Please go straight in. No need to take care of anything. It is the BKPM Head that will take care of it assisted by the Governor, the Regent.
Once again, the ultimate goal is to provide employment for the people. There are 119 potential companies that will relocate from China. We cannot afford to lose the opportunity not to attract those companies. We do not want to lose to other countries. If the price of the land is for example Rp500,000, we have set the price at Rp300,000. Likewise, if they set the price of the land at Rp1 million, we should be able to give the price at Rp500,000. If it takes one month for those countries to issue permit, then it takes a week for us. If it takes a week, then we should be able to issue permit in a day or two. We must have a good competitiveness. Otherwise, what happened last year will repeat again. Out of 33 companies relocating from China, none entered Indonesia.
I am pleased to hear that today there are seven companies which have relocated to Indonesia. Then there are 17 companies which are looking to open facilities in our country, or accounting for 60 percent, close to 100 percent. I have also continued to convey this to my Cabinet Ministers, to the BKPM Head to provide best services and engage the investors and keep them informed regarding the facilities that we have, be it matters related to land, permit, electricity, gas, or others so we can compete with other countries and those companies enter Indonesia.
That concludes my remarks on this auspicious occasion. I would also like to extend my highest appreciation and gratitude for the fast work because it is not a big country that defeats a small country; rather it is a fast country that will defeat a slow country.
I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh.
Translated by Muhardi
Reviewed by M. Ersan Pamungkas