Indonesian minister invites AMTD Group to invest in financial sector

Jakarta (Indonesia Window) – Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto has invited the AMTD Group, a financial institution based in Hong Kong, to invest and collaborate with the Indonesian government in supporting the economic recovery.

The invitation was made by Airlangga when meeting with the Chairman of the Board of Directors of the AMTD Group, Dr. Calvin Choi, Monday (May 23) on the sidelines of a working visit to Davos, Switzerland, that also discussed several issues related to the development of financial inclusion and investment opportunities in the financial sector.

In his official statement on Tuesday, the senior minister also explained that finance is one sector that plays an important role in the process of improving Indonesia’s economy during the pandemic.

Through the National Economic Program policy, the Indonesian government has provided support to business entities affected by the Covid-19 pandemic by guaranteeing credit and providing incentive funds, according to Airlangga.

In addition, the government has also opened the Pre-Employment Card Program, which is a training strengthening a crash program created to maintain income sustainability during the social and economic recovery period as well as to increase link and match with industry.

He likewise said that Indonesia already has two decacorns and the Apple Academy in Jakarta, Surabaya (East Java), and Batam (Riau Islands), hoping that in the next five years, six million digital talents would be created.

In addition, the government has also launched a super tax deduction for the education sector as well as research and development activities, he added.

He pointed out that the Covid-19 pandemic has triggered people to adapt themselves to carrying out activities, including those on economy through the use of several digital services.

In 2021, Indonesia had the highest digital economy value in ASEAN by controlling 40 percent of the market share, reaching 70 billion U.S. dollars. This figure is estimated to continue to grow to reach 146 billion dollars by 2025.

Specifically in the Financial Technology (fintech) sector, fintech assets in November 2021 have reached 4.1 trillion rupiahs (about  279.4 million dollars) with 104 registered parties.

This condition is inseparable from the government’s responsibility to achieve the national financial inclusion target of 90 percent of Indonesian adults having access to formal financial services by 2024.

Given the enormous potential for economic digitization, the government continues to make various efforts to take advantage of great opportunities that can encourage a stronger national economy.

Dr. Choi responded favorably to the Indonesian government’s offer and saw the momentum of the meeting as an opportunity for the AMTD Group to conduct further studies in the context of investment in Indonesia, especially in the financial sector and the real sector.

Reporting by Indonesia Window