10 November 2020

Indonesia economic growth will improve with the election of Joe Biden as President of the United States. Indonesia is becoming a destination country for investors to invest in.

“The trade war between China and the United States will soon subside,” said President Director of PT Mahkota Group, Usli Sarsi, Monday (9/11).

The easing of the trade war will increase Indonesia's exports, especially in these two countries. President Donald Trump's policy of over-protecting his country from foreign products has caused US exports to decline, including in Indonesia. The same applies to China. After the trade war ends, it is hoped that both countries can open up to other countries.

Investment Objective

The worldwide Covid-19 pandemic has caused economic growth to decline, including Indonesia.

“After the vaccine is introduced, we hope that the Covid-19 pandemic will end soon,” he said.

With the election of Joe Biden as President of the United States and the end of the Covid-19 pandemic, Indonesia has become a destination for investors to invest.

In 2008, there was a crisis in the United States. In 2009 the US government provided massive stimulus. In 2010, the United States emerged from the crisis. When the United States experienced a crisis, investors looked at countries in Asia. Indonesia was actually a destination country for investors. But because of the complexity of obtaining licenses, investors chose Vietnam.

But now, Usli continued, Indonesia is better prepared to become a destination country for investors to invest with the issuance of the Omnibus Law on Job Creation.

“This law provides business certainty to investors to invest in Indonesia,” said Usli.

The availability of labor in Indonesia is considerable, when compared to other countries. In addition, raw materials for production are also widely available. Infrastructure support such as roads, ports, is quite supportive.

Indonesia is one of the largest markets for selling products and services. So there is no reason for investors not to look at Indonesia as an investment destination.

The entry of investors into Indonesia will create jobs. The impact is that people's purchasing power is getting better and economic growth is also increasing.

Zero Emission

Kamala Harris and Joe Biden's plan for the United States to become a zero-emission country by 2050 has given an immediate boost to the CPO industry.​

“CPO is one of the raw materials for making fuel (Biodiesel) to replace petroleum Indonesia is the largest CPO producing country,” Usli explained.

The use of fossil fuels will slowly stop. Apart from producing a lot of emissions, its availability is also dwindling. One alternative to replace fuel to start vehicle engines, factories and so on is using Biodiesel.

If the United States is committed to using environmentally friendly fuels, other countries will follow suit. There will be a growing demand for biodiesel around the world. To meet this demand, only palm oil can do it. Sunflowers, soybeans and other vegetable plants that cannot be made into biodiesel will be able to meet the demand.

“I am optimistic that Joe Biden's leadership will soften the black campaign by European countries,” he said.

The government will be able to answer the accusations of European countries against the black campaign against Indonesian palm oil. The steps taken by the Minister of Environment, Siti Nurbaya, are very firm against plantations that violate environmental laws.

Firm action taken by the government is expected to give confidence from outside countries, especially European countries that palm oil management is environmentally friendly.

“I am optimistic that palm oil plantations in Indonesia will grow to meet domestic and foreign needs. Not only processed into CPO, but also its derivatives such as gorang oil, soap and so on.” He said.

Source : https://analisadaily.com/e-paper/2020-11-10/files/assets/basic-html/index.html#10