ARTICLE
28 February 2016

Chinese Investments Reach The Top 10 Foreign Investments In Indonesia

BI
Budidjaja International Lawyers

Contributor

Budidjaja International Lawyers
China has recently become the second largest economy in the world and is playing an influential role in the global economy.
Indonesia International Law
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China has recently become the second largest economy in the world and is playing an influential role in the global economy. It has undergone a rapid development process, particularly in the construction sector, which inspires Indonesia. The good news is Chinese investments are flourishing in Indonesia. The Chairman of Investment Coordinating Board, Franky Sibarani, also confirmed that China managed to make it to the top 10 of Indonesia's biggest foreign investors during the first quarter of 2015.

As for Indonesia, lack of infrastructure has been one of the biggest hurdles for investors in the thriving region. Therefore, to help the nation pursue higher economic growth, Indonesia has established a plan to improve the availability of infrastructure under the National Medium-Term Development Plan 2015-2019. The plan includes cooperation with China in the infrastructure construction sector.

Our President, Joko Widodo, in an interview with Xinhua media last March (2015), also emphasized that Chinese investment is particularly needed by Indonesia in the infrastructure construction sector.

In support of the National Medium-Term Development Plan 2015-2019, as well as the invitation of President Joko Widodo for Chinese investors to develop a better relationship with China, the Indonesian government not only welcomes investors from China, but also Chinese tourists/visitors through a free-visa policy for 45 countries including China (People's Republic of China). The free-visa policy is stipulated under Presidential Regulation No. 69 of 2015 on Free Visit Visa which was enacted on 10 June 2015.

Hopefully, the new free-visa policy can boost cooperation and relations between China and Indonesia.

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