Luhut Binsar Pandjaitan, Indonesia's maritime and investment affairs minister, attends the International Battery Summit (IBS) in Jakarta, Indonesia, on Jul 29, 2024. – Bloomberg
JAKARTA: Indonesia’s Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan affirmed Indonesia's readiness to compete with the Special Economic Zone (KEK) established by Singapore and Malaysia in Johor, reported Antara news agency.
"We are not afraid to compete with them. We have a good capital strength and the credibility of trust that we have built so far," the minister remarked on the sidelines of the inauguration of the PT Indonesia BTR New Energy Material lithium battery anode factory in Kendal District, Central Java, on Wednesday (Aug 7).
He acknowledged that Singapore and Malaysia would be rivals in developing the KEK.
The collaboration between Singapore and Malaysia was established with human resources supplied by these two countries, leveraging available land and energy resources.
However, Pandjaitan stated that Indonesia will not be afraid, as the country also has abundant energy resources.
Moreover, he remarked that the credibility built so far is also important as it builds trustworthiness, encouraging investors to consider investing in Indonesia.
The minister noted that providing incentives to prospective investors is not sufficient to attract investment to Indonesia. The government's credibility in maintaining investor confidence is also a key factor in this project.
"We are no longer competing with neighbouring countries just by relying on incentives, but credibility and trust are key factors that we must maintain," he emphasised.
Pandjaitan stated that Indonesia is ready to compete in accordance with President Joko Widodo's (Jokowi's) direction.
He said that President Jokowi's leadership, which will end in October 2024, has left behind a legacy that others will find hard to match.
"I am glad that President Jokowi always states that we are a competitive country. I believe in his leadership, even though he will be leaving the government, he still leaves a legacy. Others will find it hard to compete," the minister stated. – Bernama
