President Jokowi underlines foreign direct investment as the key to shield Indonesia from looming global slowdown
- Research by the World Bank revealed that Chinese companies seeking to shift operations due to the trade war with the US had gone to Vietnam, Malaysia, Thailand and Cambodia
- President Joko Widodo said ministers must do more to improve competitiveness and attract foreign direct investment
Indonesian President Joko Widodo has demanded that his cabinet ministers serve foreign investors better, after research by the World Bank revealed Chinese companies choosing to relocate operations to Southeast Asia had bypassed Indonesia in favour of Vietnam, Malaysia, Thailand and Cambodia.
Widodo, popularly known as Jokowi, was calm but forceful when he spoke at a cabinet meeting on Wednesday, looking intently at the ministers as he underlined how Indonesia had been slow to take advantage of the silver linings in the ongoing US-China trade war, which has seen supply chains shift as importers from the world’s two largest economies try to avoid paying increased tariffs.
“The World Bank told us two months ago that, from 33 Chinese companies that were exiting [the market], 23 chose Vietnam while the other 10 went to Malaysia, Thailand and Cambodia. No one came to us,” Jokowi said.
“Please underline this, we need to be aware … that we have a problem that we need to solve.”
“To all the ministers, please serve them. Accompany them until [their investments] are realised. Don’t act like bureaucrats, demanding to be served,” the 58-year-old added.
Jokowi highlighted a similar situation in 2017, when 73 Japanese firms were looking to relocate to new markets.