Berita Terkait

Kamis, 08 Juni 2023

Advancing Renewable Energy and Down Streaming Promotion, Minister Bahlil Closely Collaborates with Malaysia

Kuala Lumpur, June 8th, 2023 – Indonesian Minister of Investment/Chairman of Indonesia Investment Coordinating Board (BKPM) Bahlil Lahadalia, aims to enhance Indonesia's investment competitiveness, particularly in the field of renewable energy (EBT) and down streaming, among ASEAN member states. One of his strategies involves strengthening investment cooperation with the neighboring country Malaysia.

The strengthening of this collaboration was marked by the signing of six Memorandum of Understanding (MoU) between the Government of the Republic of Indonesia and the Government of Malaysia, witnessed by Indonesian President Joko Widodo and Malaysian Prime Minister Anwar Ibrahim this morning (8/6) local time.

During his remarks, President Joko Widodo expressed his appreciation for the signing of the six MoUs between the two countries. Jokowi aspires that bilateral relations between Indonesia and Malaysia in the future will excel and bring ample benefits to each country.

"I’m relished about the completion of the territorial sea boundary negotiations in the Sulawesi Sea after 18 years of negotiation processes, it has finally been completed. I also appreciate the completion of the MoU Border Cross Agreement, Border Trade Agreement, Halal Certification, and Investment Promotion Cooperation. Thank you for your hospitality in welcoming us delegations from Indonesia," said President Jokowi.

One of the signed MoU was about strengthening Indonesia's Investment Promotion Cooperation with Malaysia. Minister Bahlil as the representative of the Government of the Republic of Indonesia signed the MoU along with his Malaysian counterpart, Minister of Investment, Trade and Industry (MITI), Datuk Seri Utama Tengku Zafrul Aziz, represented the Government of Malaysia. Bahlil said that this collaboration was a follow-up to the past meeting with Minister Tengku Zahrul in Jakarta.

“A while ago, I met the Minister of Investment of Malaysia in my office in Jakarta on May 8. We agreed to draw up an agreement to encourage increasing investment promotion between the two countries. This MoU also reflects a commitment between Indonesia and Malaysia to always share information regarding investment policies in the two countries," said Bahlil.

Bahlil mentioned that investment challenges and competition within the ASEAN region will become highly competitive in the future, especially concerning green energy supply and downstream industry. As such, Indonesia views Malaysia as a friend and allied country with good intentions to build investment cooperation relations that mutually benefit both parties.

"Malaysia is our neighboring country that intends to build mutually beneficial relationships between our nations. They do not wish to win alone. Therefore, I will closely collaborate with Malaysia. Hopefully, in the future, the two countries can support and encourage investment through various promotional efforts that are more intensive and targeted, as well as creating a better investment climate in Indonesia and Malaysia, especially in priority sectors such as industrial downstream, renewable energy, and sustainable investment," continued Bahlil.

Furthermore, Minister Bahlil outlined that the purpose of signing this MoU is to boost joint investment promotion efforts and create a more conducive investment climate for the two countries. He also added that the focus of the investment sector being encouraged was priority sectors such as industrial downstream, renewable energy, and sustainable investment.

From 2017 to 2022, Malaysia's investment realization in Indonesia reached USD 10.1 billion, ranking seventh among the countries with the most significant investments in Indonesia out of a total of 157 countries. Meanwhile, the largest investment sectors were dominated by Transportation, Warehousing, and Telecommunications; then the Chemical and Pharmaceutical Industries; Food Industry; Food Crops, Plantations, and Livestock; and the Paper and Printing Industry. In 2022, Malaysia's investment trend in Indonesia saw a significant increase of USD 3.3 billion. Through this MoU, it is hoped that these investment figures will consistently continue to rise in the future.

In addition to the signing of the MoU on investment cooperation, five other MoUs were also signed on the same occasion, namely the Cross-Border Agreement between the Indonesian Minister of Home Affairs and the Malaysian Minister of Home Affairs; the Border Trade Agreement between Indonesian Minister of Trade and MITI Malaysia; the South Malacca Strait Maritime Border Agreement between the Indonesian Minister of Foreign Affairs and the Malaysian Minister of Transport; a Maritime Boundary Agreement in the Sulawesi Sea between the Indonesian Ministry of Foreign Affairs and the Malaysian Ministry of Transport; and a Halal Certification Cooperation between the Indonesian Halal Product Assurance Agency (BPJPH) and the Malaysian Department of Islamic Development (JAKIM). (*)

For further information, please contact:

Ricky Kusmayadi

Head of Communication and Information Services Bureau

The Ministry of Investment/BKPM


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