REPUBLIKA.CO.ID, JAKARTA -- Direct investment from China should be realized because in the long term it may boost the national economy, Finance Minister Bambang Brodjonegoro said here Wednesday.
"We are optimistic about the national economy, because there is an opportunity to change the pattern of exports to China, and we can look for foreign direct investment (FDI) partners from China," he said.
China is transforming its economy from being investment-based to consumption-based, the minister explained.
The approach was changed because China has adequate infrastructure to support its economy, he said.
"The Chinese economy remains strong. They also do not need to build a toll road or power plant because everything is available," Bambang said.
China's surplus funds in the investment sector could be used by the developing countries, including Indonesia, to build infrastructure and promote national economic growth.
"They have been over-investing, that is why our strategy towards China is shifting the trade sector towards investment. We must invite FDI, because even though the value of trade between Indonesia and China is very high, Chinese FDI in Indonesia is still low," he said.
The realization of Chinese investment in Indonesia is still much below expectations, according to the minister.
"Currently, the realization of Japanese investment in Indonesia is still number one, followed by Taiwan and Singapore. China is still below them, meaning that the interest of Chinese investors is still low, and the realization is limited," he explained.
The minister added that efforts to woo Chinese investors cannot only be done by the governments but also by the private sector as partners of the investors.
"One of the key successes of getting FDI is a good partner that can be trusted by investors to boost confidence and interest to invest in Indonesia," Bambang said.
China now has the second-largest gross domestic product in the world, and Indonesia has the potential to enter the top ten of the world economy. "So if the Indonesia-China relationship is stronger and stronger, the impact is not only for both countries but also globally," the minister said.
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