Bet on Indonesia's long-term growth, says business chief
Singapore
IT is no surprise that Indonesia is the overseas market with the highest level of interest among Singapore companies today, Singapore Business Federation (SBF) chairman Teo Siong Seng said on Thursday.
"Many economic indicators are pointing to Indonesia's positive GDP (gross domestic product) growth. There is also a strong push by the Indonesian government to improve the investment environment for foreign investors.
"We are also seeing more Singapore businesses looking to explore opportunities beyond Jakarta and Java, given that other cities in the central and east are still growing rapidly and less saturated than West Java."
The SBF chief was speaking at the inaugural Singapore-Indonesia Investment Forum held at the Marina Bay Cruise Centre.
Among those in the audience were Prime Minister Lee Hsien Loong, visiting Indonesian President Joko Widodo, ministers and government officials from both countries, as well as business leaders.
The forum was organised by the SBF in partnership with the Economic Development Board, International Enterprise Singapore, the Indonesian Embassy in Singapore, Indonesia's Investment Coordinating Board and the Indonesian Chamber of Commerce and Industry (Kadin).
Indonesia's economy, the largest in South-east Asia, grew 5 per cent last year and expanded by the same pace in the first six months of this year.
Mr Joko had told Indonesia's parliament last month that the economy is likely to expand by 5.4 per cent next year - faster than the 5 per cent average growth rate between 2014 and 2016 and his target of 5.2 per cent for this year.
Indonesia attracted about US$29 billion in foreign direct investment in 2016, with the largest inflows coming from Singapore (US$9.2 billion, a 55 per cent increase year-on-year), followed by Japan (US$5.4 billion) and China (US$2.7 billion).
The half-day investment forum focused on the tourism sector, and on how companies from both countries could take advantage of tourism-related business opportunities in Indonesia.
Singapore and Indonesia are the top source of visitor arrivals for each other. Of the 12 million international tourists that Indonesia received last year, 1.47 million of them - close to one in eight - were from Singapore. That same year, Singapore welcomed 2.89 million visitors from Indonesia.
Kadin chairman Rosan Perkasa Roeslani said tourism is a priority area for Indonesia as it is a lead sector for the creation of jobs, business development and infrastructure.
He added that the Indonesian government was actively encouraging the development of 10 cities that have been earmarked to be modelled after Bali. The 10 priority destinations include Lake Toba in North Sumatra, Tanjung Lesung in Banten, Borobudur in Central Java and Norotai in North Maluku.
In a keynote address, Mr Joko spoke of a "tremendous opportunity for Singapore within the next 12 months" as its businesses tap the ongoing developments in Indonesia.
He also said he looked forward to seeing many airline routes being launched between Singapore and the 10 new tourism destinations.
Mr Roeslani's message to all investors was this: Focus on the big picture and bet on the long-term growth trajectory of Indonesia.
"One thing I can say for certain despite the ups and downs of our economy: Indonesia has always rewarded investors favourably. We must grasp all the opportunities before us."
