Commercial War, investors are driven out of China

JAKARTA, KOMPAS.com – The world looks forward to the meeting of US President Donald Trump and Chinese President Xi Jinping. The results of the meeting should mitigate trade wars.

At present, investors are ready to relocate their industries from China. This is due to the high tariffs imposed by the United States on products originating in China.

"Investors in China have begun to think" that it would be difficult in China, "said the Minister of Economic Coordination, Darmin Nasution, at a seminar on the economic projections of 2019 in Jakarta , Wednesday (28/11/2018).

The former governor of Bank Indonesia felt that it was an opportunity for Indonesia to become a country of industrial relocation from China.

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But the positive impact of the trade war is not necessarily within the reach of Indonesia. Because other Southeast Asian countries are also trying to take advantage of the "manna".

"The only problem is that we are more competitive and attractive or not from Vietnam, Thialand and Malaysia in Southeast Asia.There is another heavy rival, India," he said. Darmin said.

The government said Darmin, should not lose momentum. Therefore, the government's goal is to improve and provide various incentives for Chinese investors to evaluate their resettlement in Indonesia.

Two weeks ago, the government released a set of economic measures of the sixteenth century, along with tax incentives for investors. Tax incentives in the form of a reduction in the payment of corporation tax (PPh) or tax holiday.

With the diagram tax holiday The news is that investors can not pay corporate income tax for 20 years. After that, investors can still get a 50% discount in PPh.