Exclusive | Indonesia wants Hong Kong to tap its investment potential, plans first-ever business forum
This is the first in a series of interviews with consuls general of emerging and belt and road economies with which Hong Kong is keen to build ties.
Indonesia will host a first-ever business forum in Hong Kong in November to provide a “clear picture” of its investment potential, its top diplomat to the city has said, stressing the financial hub’s critical role in helping the Southeast Asian giant reach its development targets.
Describing Indonesia as a “land of opportunities,” Consul General Yul Edison told the Post in an exclusive interview that Hong Kong provided many “unique” benefits for his country as he pushed for greater ties between the two jurisdictions.
Indonesia Week Hong Kong 2024, which will run from November 1 to 3 under the theme “A Bridge to Indonesia”, will be the first multi-day business forum the consulate has ever held, which Yul described as a “full promotion” to showcase the opportunities available.
Describing the forum as the largest Indonesian event in Hong Kong in the last decade, he said it would connect businesses between the two jurisdictions on matters of trade, tourism and investment.
With speakers from both Hong Kong and Indonesia, Yul said it would provide a “clear picture about the potential cooperation between the two regions”.
“We would like to give complete information about Indonesia and also we would like to get more information from the Hong Kong side, and international side, about Hong Kong,” he said.
Last year, Hong Kong and Indonesia signed 15 memorandums of understanding during a visit to the nation by Chief Executive John Lee Ka-chiu, who said closer ties with Asean countries would create new opportunities as the city battled economic headwinds.
Earlier this year, a delegation from the The Employers’ Association of Indonesia, representing some of the country’s top companies, met with Lee where they discussed the creation of more opportunities for Indonesian businesses and family firms who wanted to tap into Hong Kong and mainland Chinese markets.
Yul said that Hong Kong offered a number of advantages that would be beneficial to Indonesia. In addition to being a financial hub, he also highlighted the city’s role as a trade hub and as a centre for technology, innovation, law, intellectual property rights and people-to-people exchanges.
He also noted that 70 per cent of the world’s offshore Chinese yuan payments were settled through Hong Kong, something he hoped his country could tap into.
“We get a benefit from this disposition,” he said. “It is very unique … and particularly right now that Hong Kong is a superconnector and super-value adder.”
Singapore has long been the country’s biggest source of foreign direct investment, reaching US$15.4 billion in 2023, according to the Indonesia Ministry of Investment. That same year, Hong Kong was its third-largest source behind mainland China, at US$6.5 billion.
Yul said that Hong Kong’s interest in the country had been increasing. On Monday, the ministry revealed that Hong Kong investment had reached US$3.8 billion in the first half of this year.
Hong Kong investors were mostly putting money into industries such as basic metals, housing and food, Yul said. But he hoped that could be expanded to include other key sectors including infrastructure, tourism and its emerging digital economy.
The industries are considered key pillars under the country’s Golden Indonesia Vision 2045 development plan.
The blueprint, first proposed by the country’s outgoing president Joko Widodo in 2019, aims to turn the country into an advanced and prosperous nation by the middle of the century.
Yul noted that Indonesia had over 20 special economic zones offering tax incentives and an easier path to do business, as well as a robust start-up ecosystem.
“So we need a partner to develop those areas,” Yul said. “We look to Hong Kong, because we know that there is much money in Hong Kong as one of the financial hubs of the world.”
Yul said that beyond investment, he also hoped to see trade expanded further. Despite being the largest economy in the Association of Southeast Asian Nations with a gross domestic product of US$1.37 trillion in 2023, according to the IMF, it was just Hong Kong’s sixth-largest trading partner in the block.
Hong Kong imported around US$3.1 billion in goods from Indonesia in 2022, of which about US$1.2 billion was coal, according to the Census and Statistics Department. Other major commodities included jewellery, petroleum oils and edible products.
“The figure… it [does] not reflect the real Indonesia,” he said.
Yul said that there were difficulties to overcome in expanding trade. Indonesian authorities would have to simplify the country’s “regulatory complexity” and find ways to improve shipping lanes, he said.
“It costs a lot of money [to ship products] because Indonesia is the farthest among Asean member countries from Hong Kong, so we cannot compete if we don’t deal with this issue,” he said.
Lighter side
What is your favourite part about Hong Kong?
I think nighttime really brings out Hong Kong’s charms as a metropolitan city full of skyscrapers and neon lights. The sight is always mesmerising, and I find myself enjoying it without ever getting bored.
What Hong Kong attractions would you recommend visitors to see?
Hong Kong’s uniqueness lies in its vibrant blend of nature and culture, technology and tradition. As such, I think visiting the Avenue of Stars and Victoria Peak are a great way to see a glimpse of the two sides of Hong Kong – a glimpse of the city’s artistic glitz and glamour at the Avenue of Stars, as well as its lush greenery and the gorgeous city view visible by hiking up Victoria Peak.
Do you have a favourite Cantonese dish or beverage?
I’m quite fond of Hong Kong’s dim sum. There are so many variations, and I enjoy their authenticity compared with the dim sum back home in Indonesia which of course have been slightly adapted to suit local tastes.
