Indonesia’s West Java Remains Foreign Investors' Choice Location despite High Minimum Wage

JAKARTA, KOMPAS.com – Foreign investments in Indonesia’s West Java reached 86.3 trillion rupiahs ($6.1 billion) in January-September 2020, or 14.1 percent of the total foreign investment of 611.6 trillion rupiahs ($43.3 billion) in the country, the Investment Coordinating Board (BKPM) said.

BKPM head Bahlil Lahadalia said on Monday that among provinces, West Java attracted the largest share of foreign investments.

The inflow was higher than the investment in Jakarta Province at 72.5 trillion rupiahs ($5.1 billion), East Java Province at 66.5 trillion rupiahs ($4.7 billion), and Banten at 42 trillion rupiahs ($2.9).

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“I appreciate the realization of this investment, both domestic investment (PMDN) and foreign direct investment (PMA), making West Java Province a leading investment destination for the last three years,” Bahlil said during the virtual West Java Investment Summit in 2020 on November 16.

Bahlil went on to say that this showed that the policies and services carried out by its stakeholders in the province are positive for the investors despite it having the highest minimum wage.

“We see that West Java Province is the investment destination even though its minimum wage is higher than Central Java Province,” he said. This also proved that West Java Province has provided a high level of productivity in the labor sector.

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“The productivity level of its manpower in West Java Province is quite satisfying for the investors,” he added.

Bahlil called for all regional heads to work together to lure investment into the country.

“No matter how great the existing regulations are, without the support of the leadership from each regional head, I am sure the investment will not be optimal,” he said, adding that West Java Governor Ridwan Kamil understands what investment is all about and knows what investors want.

(Writer: Yohana Artha Uly | Editor: Ambaranie Nadia Kemala Movanita)

Source: https://money.kompas.com/read/2020/11/16/182948226/kepala-bkpm-jawa-barat-diminati-investor-meski-nilai-umr-lebih-tinggi