Encouraging Investment from Europe, Bahlil Explains Job Creation Law (CK Law)

The Netherlands, 19 November 2020 – The Indonesia Investment Coordinating Board (BKPM) Chairman Bahlil Lahadalia arrived in Amsterdam, the Netherlands, Wednesday morning at local time (18/11). Bahlil is slated to have meetings with four Chief Executive Officers (CEOs) of multinational companies or global corporations engaged in several industrial sectors.

The visit of the BKPM Chairman was also to fulfil the invitation of the Embassy of the Republic of Indonesia (KBRI) in Den Haag and the Indonesian Chamber of Commerce and Industry (KADIN) in disseminating the Job Creation Law (CK Law) to businesses in the Netherlands, especially for serious investors who want to expand their business in Indonesia.

Deputy Chairman for Investment Promotion Ikmal Lukman, who was also part of the visiting delegation, said that the BKPM Chairman is scheduled to have meetings with Verstegen, FrieslandCampina, Wavin B.V., and Infineon.

“Verstegen is engaged in the world nutmeg industry. They want to build a processing industry. There are also Susu Bendera FrieslandCampina, Wavin engaged in the piping industry, and Infineon as the world’s biggest semiconductor manufacturer based in Germany. Therefore this visit is carried out to see the seriousness of these European Companies. The Government does not only want to increase the inbound investment, but our concern is also the diversification of the investment,”said Ikmal after arriving in the Netherlands yesterday (18/11).

Ikmal Lukman added that these global corporations were very enthusiastic about meeting BKPM following the passing of Law Number 11 of 2020 concerning Job Creation. Even in the midst of challenges due to the COVID-19 pandemic, the attractiveness of investment in Indonesia remains promising.

“They are also enthusiastic after the enactment of CK Law. Some want to enter Indonesia immediately. Some have entered and want to increase production and expand factories. We are going to hear what their expectations are. Surely, this can be a positive sentiment for investment and job creation amid the pandemic,” said Ikmal.

Looking at the Netherlands investment performance in Indonesia from 2015 to September 2020, the Netherlands is in 6th place with a total value of USD 8.8 billion. In that period, the Netherlands was the first European country to rank among the top 10 investments in Indonesia. By sector, it is recorded that the Netherlands investment interests in Indonesia were in the sectors of Electricity, Gas, and Water (35.1%); Transportation, Warehouse and Telecommunication (22.5%); Mining (17.3%); Chemical and Pharmaceutical Industries (6.5%); Food Industry (4.7%) and other sectors (13.8%). (***)