Jakarta. Bilateral economic ties between Indonesia and China enter its 71st anniversary this year. In order to strengthen this relationship, the newly instated local currency settlement will create greater benefits for both countries’ businesses. 

The Indonesia-Southern China Business Forum 2021 discusses the topic Re-Accessing Indonesia’s Trade and Investment Opportunities through LCS. The forum is expected to increase Chinese investors and businesses’ interest to invest in Indonesia. 

Kicking off the forum were the VP of CCPIT Guangdong Fan Xinlin and President & CEO, UOB China, Peter Foo Moo-Tan. The forum's keynote speakers included Indonesian Ambassador to China and Mongolia Djauhari Oratmangun and Senior Deputy Governor of Bank Indonesia Destry Damayanti.

A well as presentations by Deputy of Investment Planning, Ministry of Investment, Nurul Ichwan; Executive Director of  Financial Market Development Donny Hutabarat; Alternate Country CEO/Head of  Global Markets, UOB China, Mark Yang, Overseas Business General Manager, SAIC GM-Wuling Automobile, Lisa Li, and Chief Financial Officer, Huawei Indonesia Han  Ding. 

In his keynote speech, Ambassador Djauhari welcomed the LCS agreement implemented in September. Thanks to the LCS, businesses can enjoy lower transaction fees and have the option to finance  trade and direct investment in their local currency. 

He also expressed his praise for Huawei and other Chinese companies’ investment in Indonesia. 

“Since Indonesia and China became comprehensive strategic partners on October 2, 2013, both countries have given rise to great partnerships in multiple areas, including trade, investment, and  health," the diplomat said, as quoted from a recent statement.

"As Southeast Asia’s largest economy, which is also projected to become the world’s fourth largest by 2050, Indonesia opens its doors to foreign investors, including China, to become part  of this impressive growth story.” he said. 

Senior Deputy Governor of Bank Indonesia Destry Damayanti said that China is the second-largest country in terms of foreign direct investment value in Indonesia. The LCS agreement with China has showed promising growth, with an average of USD15 million per month over the past 3 months. 

She said, “we are optimistic that LCS transactions will continue to increase in line with rising trade  and investment. We have prepared various quick wins to promote LCS, including technical  assistance for both exporters and importers alike, to conduct end-to-end, real LCS transactions." 

"The conveniences offered by LCS will positively impact FDI in Indonesia,” Destry added. 

Chief Financial Officer of Huawei Indonesia Han Ding expressed the company’s support towards the positive changes initiated by the government to continue improving Indonesia’s investment climate.

“With a history of over 21 years in Indonesia, Huawei appreciates the Indonesian government’s efforts and actions to meet multinational investors’ needs," Han Ding said.

"We hope that investment will not only create commercial value for investors, but also contribute to post pandemic economic recovery, build the digital economy, power the nation towards the Indonesia Golden 2045 vision, and bring prosperity to all Indonesians,” he concluded.