Over the past six months, the ARISE+ Indonesia team has worked closely with the Ministry of National Development Planning (BAPPENAS), Investment Coordinating Board (BKPM), the Ministry of Trade and other stakeholders to develop an Electronics Sector Deep-Dive Assessment and an Investor Aftercare Study, both aimed at improving Indonesia’s investment policies and enhancing the business environment for investors, both in the short-term and the medium-to-longer term. The key policy recommendations provided by the two the studies come at an opportune time as Indonesia seeks to revitalise its manufacturing sector through its Making Indonesia 4.0 initiative.
Presenting the Study “Electronics Sector Deep-Dive for Investment” at Trade Expo Indonesia’s Business Forum 2020
Following a focus group discussion (FGD) with government stakeholders on the study “Electronics Sector Deep-Dive for Investment”, the Ministry of Trade invited ARISE+ Indonesia to present highlights of the study at the business forum during the 35th Trade Expo Indonesia (TEI) in November 2020 that attracted more than 100 participants including Indonesian and international businesses. ARISE+ Indonesia presented an analysis of export-oriented foreign direct investment (FDI) in the electronics subsectors and their contributions to Indonesian companies’ participation in global value chains (GVCs). The CEO of ASTA Asia, one of the foreign companies consulted in this study, was also invited as a speaker by ARISE+ Indonesia to share his perspectives on Indonesia’s opportunities and challenges for investing in the electronics sector.
The study sets out a series of practical recommendations for the Indonesian government to consider as it seeks to enhance the investment climate and establish a supportive business environment for potential and existing investors in key electronics subsectors. Such recommendations include the development of subsector-specific investment value propositions, an FDI-focused supplier development programme, as well as cluster development to strengthen and secure supply chains.
Investor Aftercare Study
More recently, the ARISE+ Indonesia team has been working with BAPPENAS and BKPM on the development of an Investor Aftercare Study. Supporting the retention and expansion of existing investors has become more important than ever since the pandemic began, and the government has rightly made this a strategic priority for 2021. The study takes a close look at investor perspectives on Indonesia’s investment climate as well as specific service and support measures provided by the government, both in the country’s own right as well as the ASEAN and broader international context. Combining these perspectives with international good practice examples of aftercare, the study sets out a series of practical recommendations for BKPM and its peers in government to consider, in areas ranging from investor account management to systematic sector- and issues-focused policy roundtables bringing together public and private-sector stakeholders.
Every time we consider expanding Indonesian operations, the question from our HQ is "Will it be too difficult?"
Existing European Investor (Singapore-based)
You may access relevant information: “Indonesia Aims to Play More Important Role in the Electronics Global Value Chains” through this link.