According to a community member, Indonesian and Thai companies you gain more from investing in the manufacturing supply network industries.
The Indonesian Embassy and the Indonesian Investment Ministry’s” Business Forum 2024: Purchase Options in Manufacturing Supply Chain Industries of Indonesia” were just held by the Indonesian Embassy and the Indonesian Investment Coordinating Board to entice Thai buyers, particularly in the fuel and metal areas.
Fuad Adriansyah, the Indonesian Embassy’s Deputy Chief of Mission, said the manufacturing sector is the largest contributor to the gross domestic product ( GDP ) of the Association of Southeast Asian Nations.
It generated US$ 760 billion ( about 25.3 billion baht ), accounting for 21 % of the Asean total GDP in 2022.
For Indonesia, he said the state has been enriched with abundant natural resources, particularly in coals and materials.
” Minerals such as copper, tin, ore and copper have fuelled many production companies, especially in the fields like electrics and electronics, automotive and the new market of electronic vehicles”, he added.
The Indonesian authorities has also encouraged funding in the supply chain industry, particularly since the government has shifted away from primarily exporting natural materials as a result of the ban on exporting ore in 2023 and nickel in 2020.
” While the transition has created some challenges, it still creates the opportunities for investors to build supply chain industries ]in Indonesia ] supported by an abundance of, comparatively, local labour and proximity of raw material sources”, he added.
He said Thailand is a crucial investment in Indonesia. From 2017–2022, Thai investors poured US$ 1.52 billion ( about 54.2 billion baht ) into about 1, 400 projects across Indonesia. In the first quarter of 2024, Thai funding worth reached US$ 225 million.
He claimed that the Thai firm industry has knowledge of developing the global supply chain, and that more than half of the country’s production is a part of the supply chain.
With Thailand’s quantitative benefits, Thai businesses can do better partnership and grow up with Indonesia, he said.
Thailand and Indonesia, as Asean members, both acknowledged the importance of enhancing economic integration across all Asean nations, according to Tanita Sirisup, executive director of the Foreign Investment Marketing Division of the Thailand Board of Investment ( BoI ).
With the mixed minimum GDP of the 10 Asean countries estimated at US$ 3. 6 trillion, she claimed that despite international confusion, Asean stood out as a promising location for international investment.
It is projected to reach US$ 4.5 trillion driven by the rising home use, export-oriented production and the younger workforce.
Asean nations had further strengthen economic integration, enhance sustainability and digitization, and increase trade and investment relations, she said.
Indonesia is one of Thailand’s most significant trade and investment lovers. With full investment applications worth US$ 230 million, primarily from projects in the air transport industry, it was ranked among the top ten investors in Thailand in the first quarter of this year.
For Thai funding in Indonesia, some Thai companies invest in power, metal mine, financial sectors and agriculture. She said there is still room for further investment.
It is crucial to concentrate on future growth engines that will promote sustainable development in both countries while both countries continue to strengthen their partnership.
She said the Thai government focuses on promoting investment in strategic industries including bio-based and renewable energies, smart electronics, new energy vehicles, digital and creative industries, and regional headquarters and international business centres.
Because both countries have a high potential for building a resilient supply chain through the use of their raw materials, natural resources, manpower, and available markets, she said,” Thailand and Indonesia can work together to achieve economic and industrial development goals.”
Thailand and Indonesia have the potential to collaborate with the manufacturing sector, which accounts for 34 % of Thailand’s GDP and contributes to exports, given the changing nature of the supply chain dynamics and growing need for resource security.
Indonesia can make use of Thailand’s strong supply chain in automotive, electronics, chemical and petrochemical, as well as agro-processing. Likewise, Thai companies can benefit from Indonesia’s rich natural, agricultural and fishery resources and large domestic market.
” Together, the countries can work to produce value-added products for Asean and the world. Moreover, areas such as renewable energy, digital transformation, and infrastructure development offer further opportunities for investment and collaboration.
Both countries are increasingly focusing on sustainable development, and there is a great opportunity for Thai businesses to invest in the country’s growing green economy, she continued.