Due to Mass Organisation and Permitting Issues, Indonesia Risks Missing Out on the Windfall
Indonesia has the opportunity to attract a large number of foreign investors. The shift in production from China opens up a major opportunity, but this momentum has not yet been fully exploited.
The General Chairman of the Indonesian Footwear Association (Aprisindo), Anton J Supit, revealed that foreign investors’ interest in Indonesia remains high. However, various domestic obstacles are making them reconsider before entering.
“The investment trend is that many want to enter, because they see, especially, the US-China trade war. So automatically, they will reduce in large numbers from China,” said Anton to CNBC Indonesia on Thursday (30/4/2026).
He explained that Indonesia is one of the alternative destinations after Vietnam. However, several constraints make Indonesia’s position not yet fully competitive.
“If asked, the main destination is always Vietnam. But again, Vietnam is already saturated, finding workers is difficult. Then they look at second, Indonesia,” he said.
Amid this opportunity, classic problems continue to recur. From bureaucracy to non-technical disruptions that become inhibiting factors.
“But if it comes to permitting services, AMDAL issues. There are still disruptions from mass organisations. To be honest, if not fixed, they will think twice,” he emphasised.
This issue is not complex, but rather an obstacle that can actually be resolved if there is firmness.
“How long does it take to process AMDAL? One and a half years? A company comes, a letter from a mass organisation asking that this job be given to them,” Anton revealed.
This situation creates legal uncertainty that makes investors hesitant. Unfortunately, this condition continues to drag on.
“That means this problem is legal certainty. If the law runs well, there are no such threats,” he explained.
If this condition is allowed to continue, Indonesia could lose the golden momentum of global industry relocation.
“If we let it drag on too long and they have already gone to India, well, that’s the problem,” he said.
He warned that investors who have chosen other countries usually will not return.
“Once they go, they won’t come back. So don’t let the opportunity that we should enjoy slip away,” he said.