Jakarta. Chief Economic Affairs Minister Airlangga Hartarto announced on Friday that 15 companies from Taiwan plan to relocate their operations to Indonesia. However, he emphasized that the Indonesian government must implement several measures to ensure this relocation significantly boosts the national economy.

“The Taiwan Textile Association has expressed its intention to invest in Indonesia, as some members have already invested in Purwakarta,” Airlangga said during a media briefing at his office. He did not disclose the names of the companies.

Airlangga outlined four key requirements the government must meet to attract foreign investors seeking to relocate their investments. The first requirement is easing land acquisition processes.

“I direct them to enter industrial zones because if they operate outside these areas, the Environmental Impact Assessment (Amdal) process can be lengthy, often taking two to three years just for land preparation. By entering industrial zones, this becomes easier, as all requirements, including Amdal and land acquisition, are already fulfilled,” he explained.

The second requirement is the availability of green energy linked to industry. Currently, green energy and energy transition are critical issues for businesses.

“Green energy can come from gas, hydro, or solar power, all of which are available in West Java,” Airlangga noted.

The third requirement is that the government must provide a competitive gas supply. Investors often struggle with high gas prices in Indonesia, which exceed US$12 per million British Thermal Units (MMBTU). The government plans to involve state-owned Perusahaan Gas Negara (PGN) to address this issue.

“I mentioned that if the price is $9 per MMBTU, that’s the average rate for industries. If they receive a higher rate, they must report it to the government, and we will call PGN to address it,” said Airlangga.

The fourth requirement is that investors seek access to a large market that generates substantial profits. Currently, their highest returns are from investments in China and Vietnam, where Vietnam benefits from trade agreements such as the European Union Comprehensive Economic Partnership Agreement (EU CEPA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Therefore, the government is working to finalize these trade agreements.

“With EU CEPA and CPTPP, the market will open up with zero entry costs. Meanwhile, Indonesia currently faces tariffs ranging from 16% to 20% with Europe. Large end users have committed that if Indonesia secures EU CEPA, they will relocate operations even from Vietnam to Indonesia,” Airlangga concluded.