Indonesian Political, Business & Finance News

Government Promotes Nine Priority Sectors to Chinese Investors, Including IKN Nusantara

| Source: GALERT
Bisnis.com, JAKARTA — The government continues to offer investment opportunities in nine priority sectors to investors, particularly from China, including the development of the new capital city, IKN Nusantara.

Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu stated in his presentation that investment in IKN is prioritised for housing, education, hospitals, and hotels.

To attract investors to IKN, the government is offering a 30-year tax holiday facility, streamlined licensing, leasehold rights (HGU) of up to 95 years with the option to extend for an equivalent period.

"Indonesia's direct investment policy prioritises strategic sectors aligned with the SDGs that hold the greatest potential to drive economic growth," he said during the Tri Hita Kirana Inaugural Global Business Summit on Belt and Road Infrastructure at the BKPM office on Sunday (25/5/2025).

Beyond IKN, Todotua also promoted sustainable natural resource downstreaming industries, as well as new and renewable energy, to Chinese investors. Additional sectors on offer included agriculture and food industries, pharmaceuticals, medical devices, healthcare, and higher and vocational education.

Todotua further promoted the semiconductor industry, highlighting the abundance of raw materials for upstream semiconductor manufacturing, such as silica, gallium, copper, bauxite, and gold. The government is also encouraging investment in export-oriented industries.

Addressing the Chinese investors, Todotua said Indonesia continues to improve its investment regime and strengthen coordination among stakeholders to facilitate investment.

"We are enhancing legal certainty in investment procedures by implementing positive and effective principles based on service-level agreements among ministries," he added.

At the business meeting held under the Belt and Road Initiative — a trade route initiative connecting Asia with other regions — a number of Chinese companies expressed interest in investing in Indonesia, including XiamenAir, recycling firm GEM Co. Ltd., Vivo, Huayou Cobalt, and JA Solar Holdings Co., Ltd.
View JSON | Print