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Indonesia in Pursuit of Dutch Semiconductor Investors

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Indonesia is trying to get some investors to invest in its semiconductor industry, and Jakarta recently took a shot at attracting Dutch investors.

The Dutch top diplomat, Hanke Bruins Slot, visited Jakarta on Tuesday to meet her Indonesian counterpart Retno Marsudi. With the Netherlands being home to a well-developed semiconductor industry, Indonesia took the opportunity to get some potential Dutch investment. According to Retno, the Netherlands is already a major investor in Indonesia. And the archipelagic country wants the Netherlands to further expand its investment into other sectors.

“The Netherlands is the largest investor from Europe contributing more than $15.5 billion since 2013 with a yearly average increase of 15.8 percent,” Retno said in a joint press statement after her talks with Bruins Slot.

“Moving forward, Indonesia hopes to strengthen cooperation to develop the semiconductor industrial ecosystem in Indonesia,” Retno said.

Government data shows foreign direct investment (FDI) coming from the Netherlands into Indonesia totaled $856.6 million in Jan-Sep 2023. These investments went into 2,484 projects. Netherlands also became the 8th largest foreign investor over that period, just behind South Korea which invested almost $2 billion.

A market intelligence report by the New Zealand Foreign Affairs Ministry wrote that Dutch semiconductor companies accounted for approximately 9 percent of the global market share for semiconductors. Dutch semiconductor giants include ASML, NXP Semiconductors, and STMicroelectronics. The largest, ASML, posted 21.2 billion euros (approximately $22.4 billion) in revenue last year.

Not Just Netherlands
In the past, Indonesia had also been pursuing semiconductor investments from other countries. President Joko “Jokowi” Widodo earlier this year went to Germany to attend the Hannover Messe trade fair. Jokowi did not want to come home empty-handed and tried to attract German investors.

“Indonesia is ready to be a partner for semiconductor and electric vehicle [EV] battery production. I hope German businesses would support us to make Indonesia part of the global chip supply chain,” Jokowi said at Hannover Messe in April.

German semiconductor giant Infineon has already invested in Batam, Riau Islands. Its manufacturing plant has been operating since 1996. According to the Industry Ministry, Infineon has pledged to increase investment by 35.37 million euros to bring the weekly production capacity of its Batam plant to 65 million pieces by 2025.

Indonesia is also lobbying with the US. Then State-Owned Enterprise Deputy Minister Rosan Roeslani told news outlet Antara in August that the government had been in talks with the US Department of State on exploring whether Jakarta could be part of the semiconductor chip supply chain. This could help pave the way for the US companies who wish to invest in Indonesia to get some sort of incentives, according to Rosan.

SOURCE: jakartaglobe.id
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Indonesia, Switzerland to Ratify Bilateral Investment Treaty This Year

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Jakarta. Foreign Minister Retno Marsudi on Wednesday met her Swiss counterpart Ignazio Cassis to pursue a speedy process in the ratification of a bilateral investment pact as soon as this year. After seven rounds of negotiations since 2018, Indonesia and Switzerland last year inked a bilateral investment treaty set to better protect Swiss businesses when investing in Indonesia and vice versa. In a joint press conference after her meeting with Cassis, Retno said that Switzerland was Indonesia’s second-largest European investor in 2021. “To further boost investment partnership, I underlined the importance of ensuring the bilateral investment treaty can be ratified within … Continue reading →

Indonesia may become high-income country in few years: Pandjaitan

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Indonesia’s marine economy has a lot of room to grow and the country could become a high-income country in the next few years, Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan has said. According to Pandjaitan, in 2045, the contribution of the marine sector to the national economy would rise by twofold and continue to grow. At the opening of the Archipelagic and Island States (AIS) Forum here on Tuesday, he said that given the current trend, he believes that Indonesia would become a high-income country in 10 years. If this continues, within the next three decades, Indonesia … Continue reading →

The Indonesian Electric Vehicle Market is Projected to Reach IDR 30 Trillion in 2029

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Maximize Research projects that the Indonesian electric vehicle market will reach a value of around US$2.02 billion, or the equivalent of Rp.30 trillion. The market value of Indonesia’s electric vehicles is said to have reached US$533.19 million or around Rp7.93 trillion in 2020. This figure is expected to grow with a compound annual growth rate (CAGR) of 20.96 percent until 2029 so that the value can reach US$2.02 billion. The Maximize Research report highlights the key dynamics driving the growth of the electric vehicle market. The abundance of natural resources that Indonesia has, such as nickel, is an important component in the production of electric … Continue reading →

3 Days in Germany, RI Pocketed 27 Business Deals Worth Nearly IDR 28 Trillion

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After visiting Germany for three days, Indonesian President Joko Widodo (Jokowi) managed to secure 27 business deals with an investment value of US$1.98 billion or Rp.27.9 trillion. This good news was stated directly by the Coordinating Minister for the Economy Airlangga Hartarto when opening the Indonesian Pavilion at Hannover Messe. Of the total cooperation that was successfully bagged, 1 of them was in the form of intergovernmental agreements (Government to Government/G2G), 4 agreements between the government and business actors (G2B), while 22 others were agreements between companies (B2B). According to Airlangga, this cooperation can absorb up to 18,000 workers. In this biggest … Continue reading →

Foreign Capital of IDR 4.23 Trillion Enters Indonesia in the First Week of April

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Bank Indonesia (BI) reported that non-resident foreign capital inflows into the domestic financial market amounted to IDR 4.23 trillion, according to transaction data April 3-5 2023. Erwin Haryono, as the Executive Director of the BI Communication Department explained, the nominal was obtained based on the accumulation of sales of Government Securities (SBN) worth Rp. 2.13 trillion plus a net purchase of Rp. 2.10 trillion on the stock market. “During 2023, based on settlement data up to April 5, 2023, non-residents bought IDR 59.00 trillion net on the SBN market and IDR 4.65 trillion net bought on the stock market,” said Erwin in … Continue reading →

Export-Import Positive, RI Trade Balance January 2023 Surplus Nearly IDR 4 Billion Dollars

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Indonesia’s export-import sector is still showing quite good growth by maintaining a surplus for 33 consecutive months. In January 2023, the trade balance recorded a surplus of IDR 3.87 billion US dollars. Import performance was reported to have grown by 1.27 percent yoy with a total of IDR 18.44 billion US dollars. Among these incomes, consumer goods contributed a positive growth of 1.09 percent yoy, then capital goods 5.66 percent yoy, and auxiliary raw materials 0.41 percent yoy. Commodities that dominated imports during this period included machinery, electrical equipment and their parts, and other main commodities. The United States, the Philippines and … Continue reading →