Indonesia Competes with India and Vietnam for Industrial Relocation Investment
JAKARTA - Developed nations are seeking new locations to expand their industries. The relocation of industries from one country to another is currently a growing trend. Indonesia is striving to secure new investment quotas from these industrial relocations. However, other countries such as Vietnam, Thailand and India are also competing for the same opportunities.
Deputy Chairman of the Indonesian Industrial Estate Association (HKI) Darwoto explained that prospective investors seeking new investment locations are more attracted to India and Vietnam.
"We asked our Japanese colleagues what the difference is between Vietnam, Indonesia and India. They said India is more attractive. This means India offers something that can even be provided upfront," said Darwoto at a Bisnis Indonesia discussion forum entitled "Various Threats to Investors" in Jakarta on Wednesday (21/5/2025).
According to him, India's boldness in providing upfront incentives has made Japan more inclined towards them, despite Japanese company executives preferring to invest in Indonesia.
"They actually want Indonesia, because it is closer and the culture is not that different. India is far away and the culture is very different," said Darwoto.
Under the leadership of President Prabowo Subianto, who has called for adopting the ATM formula (Observe, Imitate and Modify), Indonesia has an opportunity to capture these relocations, provided that several obstacles such as thuggery by civil organisations and short-sighted policies can be evaluated and improved.
"We can follow examples from other countries and heed President Prabowo's direction to observe, imitate and modify, so that the economic growth target mentioned earlier can reach 8 per cent," he said.
Deputy Chairman of the Indonesian Industrial Estate Association (HKI) Darwoto explained that prospective investors seeking new investment locations are more attracted to India and Vietnam.
"We asked our Japanese colleagues what the difference is between Vietnam, Indonesia and India. They said India is more attractive. This means India offers something that can even be provided upfront," said Darwoto at a Bisnis Indonesia discussion forum entitled "Various Threats to Investors" in Jakarta on Wednesday (21/5/2025).
According to him, India's boldness in providing upfront incentives has made Japan more inclined towards them, despite Japanese company executives preferring to invest in Indonesia.
"They actually want Indonesia, because it is closer and the culture is not that different. India is far away and the culture is very different," said Darwoto.
Under the leadership of President Prabowo Subianto, who has called for adopting the ATM formula (Observe, Imitate and Modify), Indonesia has an opportunity to capture these relocations, provided that several obstacles such as thuggery by civil organisations and short-sighted policies can be evaluated and improved.
"We can follow examples from other countries and heed President Prabowo's direction to observe, imitate and modify, so that the economic growth target mentioned earlier can reach 8 per cent," he said.