Jakarta, (ANTARA News) - The Indonesian government expected Chinese businessmen to relocate their industries to Indonesia and made it as a production basis, Trade Minister Mari Pangestu said here, Thursday.
"They are keen to relocate, we hope that they will choose Indonesia as production basis for their products," Mari said after accompanying President Susilo Bambang Yudhoyono in receiving a Chinese Communist Party delegation at the presidential office.
Mari said, the wish for the relocation was triggered by increased wages in China, the appreciation of the Yuan, and trade restrictions imposed by the US and European countries.
"For garments, electronic products, and labour intensive industries, they want to relocate among others to Indonesia. We have the China-ASEAN free trade area, and they saw it as an opportunity to make Indonesia as a regional production basis," she said.
Some regions are ready for the relocation especially Central and East Java provinces such as Semarang and Solo, while West Java imposed higher wages.
"They (the delegation) has visited some regions and later this month we will send an investment promotion team led by chief of the Coordinating Board of Investment (BKPM)," she added.
The government has offered conducive investment climate as well as the current reform program that would be finished within the next one or two years.
"For instance, revision of draft on tax law is expected to be finalised this year and effective next year, tax reduction from 30 percent to 25 percent in 2010, improvement in the investment climate, port services and infrastructure development," Mari said.
In addition, she said, Indonesia has a lot of potential human resources.
"Considering our demography, we are useful (to Chinese businessmen). China has higher segment of elderly people, while we have more young population. 50 percent of our population were less than 29 years old," she said.
Some 400 Chinese businessmen have made business visits to Indonesia this week, to seek cooperation possibilities.(*)