KADIN INDONESIA
Remarks by Mr Rachmat Gobel, Vice-President of Kadin Indonesia, at the Opening of the JBIC Seminar on Japanese Foreign Direct Investment and Indonesia
as an Investment Destination
Hotel Nikko – Jakarta March 11, 2008
Bismillahirrahmanirrahim,
Assalamu’alaikum Warahmatullahi Wabarakatuh, Our Distinguished Visitors from Japan,
My Fellow Speakers and Panelists,
Our Friends from the Foreign and Indonesia Business Community,
Ladies and Gentlemen,
First and foremost, on this the 50th anniversary of Japan-Indonesia relationship, let me bid all of you, our friends of Indonesia who have come from Japan and other parts of the world, a warm welcome to Indonesia. I am honored to be here to open the proceedings of this important conference.
Second, let me thank JBIC for its initiative in organizing this Seminar today to brief us on the findings of the 19th JBIC Annual Survey on Overseas Business Operations by Japanese Manufacturing Companies.
The Survey provides an important map of Japanese business activity and intentions and it gives all the
opportunity to examine where we stand in competing for investment. JBIC plays a valuable role in our region and we are grateful for JBIC’s advice and support in Indonesia.
Ladies and Gentlemen,
It is clear that we have the potential in Indonesia to be a much bigger player in the regional supply and
production chain.
Kadin Indonesia has been actively working toward this goal over the last few years.
At the outset of this Government, we released the Kadin Roadmap. In 2007, we produced the very comprehensive Kadin Vision 2030 and Roadmap 2010 for National Industry which focuses on rebuilding the export performance and potential national industrial development. The commitment of the Indonesian Government to support this Vision and Roadmap is clear.
In addition to these Roadmaps, we have worked closely with the Government on the development of the new Investment Law and other associated laws to improve the investment and business climate. We have
established a Kadin PEPI team to provide business
input with our friends from the foreign chambers on the DNI and other implementing regulations.
Ladies and Gentlemen,
The Government has worked hard to improve the business environment and our industrial performance with many changes. President Yudhoyono and Vice-President Kalla have themselves gone to directly into the field to examine the challenges and implementation. Unfortunately, we have not yet seen the full dividends from these contributions from Kadin and from the policy changes of the Government.
The real measure of success of reform is how policy changes translate into outcomes for the business sector and how effective they are in improving employment and reducing poverty.
We would like to see more focus on the real sector outside of energy and resources in areas of processing, manufacturing, agriculture, maritime and fisheries. With hope that with the policy reforms of the
government, we will see more investment from Japan in these sectors. This will help us in building food security and creating more jobs.
Ladies and Gentlemen,
In order to reach our full potential, we would also like to see Japanese investment contributing to
improvements in technology in the real sector. This not only helps to boost exports but also means that we do not need to rely so heavily on imports in areas where we could competitively produce them domestically. An increased role of small and medium size enterprises (SMEs) and supporting industries will contribute to increasing employment in all sectors. SMEs and supporting industries will also contribute to a
diversified industrial base that would spread across the country.
Investment in the real sector not only addresses the key challenges of unemployment and poverty but also
develops the skill levels of our workforce and makes us more competitive.
Ladies and Gentlemen,
We realize that we still have much more to do in Indonesia to improve our investment and business environment. Change is never quick enough for business people especially in a highly competitive region.
However, we have had a long and cooperative
partnership with Japan and we understand more than most of our neighbors the importance of long term commitment.
We hope that this partnership can continue and we urge both sides to work hard on building a strong basis for trade and investment over the decades ahead. The JBIC Survey is one important tool to assess where we are going. We look forward to constructive
discussions on these issues today and in the months ahead.
Ladies and Gentlemen,
By saying “Bismillahirrahmanirrahim” I open the JBIC Seminar 2008 on “Japanese Foreign Investment and Indonesia as an Investment Destination”. May I wish you luck and thank you.
Wassalamu’alaikum Warahmatullahi Wabarakatuh,
Rachmat Gobel
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