The Investment Coordinating Board (BKPM) announced Monday it would soon establish a “China desk”, on par with special desks for East Asian giants Japan and South Korea that have been set up previously.

The desk, which will employ Chinese-speaking staff including two to three Chinese Embassy employees, is expected to address issues that have hindered potential Chinese investors, such as slow responses on land inquiries and language barriers.

“With the presence of the desk, we want to increase investment realisation from China,” BKPM head Franky Sibarani told reporters on the sidelines of a China-Hong Kong investor forum. “The rapid growth of Chinese investment in Indonesia, as well as intensive communication between investors and the government, require assistance from those familiar with the Chinese language.”

Investment realisation from the world’s second largest country into Indonesia is on the rise, with 14 per cent of investment interests being realised last year, from 7 per cent per year during 2010 to 2014. China, however, is still ranked seventh on the list of foreign direct investors in Indonesia with investment value of $628 million last year, according to BKPM data.

Investment commitments also doubled to $22 billion last year, from an average of $11.3 billion per year in the five-year period ending 2014. Hong Kong, an autonomous territory that belongs to China, also recorded an increase in investment commitment to Indonesia to $3 billion in 2015, from an average of $2 billion per year from 2010 to 2014.

The trend is in line with Chinese companies’ drive toward global expansion to widen their market outreach beyond their home country, which has seen economic growth slowdown to levels unseen in a quarter of a century.

“It is, therefore, our responsibility to provide support so that the investment commitments are realised,” said Franky.

Chinese Ambassador to Indonesia Xie Feng said in his opening remarks during the investor forum that Indonesia was a priority destination for Chinese companies and that most Chinese investors put high hopes on the administration of Joko “Jokowi” Widodo.

“Less than two years after his inauguration, I think we have seen changes. We hope for more changes in years ahead,” he said.

The government has issued 10 economic stimulus packages since September last year to reform the country’s red-tape issues, including by speeding up permit processing to three hours for companies that invest more than 100 billion rupiah ($87 million) and employ 1,000 local workers. The facility had attracted five Chinese investors with investment value of $2.34 billion by mid-February.

“Although the world economy continues to slow down, the economy of Indonesia has continued to obtain impressive performance over the last few years. Its growth potential is tremendous,” said Zhang Min, chairman of the China Chamber of Commerce in Indonesia.

A local arm of Chinese tire giant Shandong O’Green Group, PT Eastern Ogreen, has said it is investing $501 million to build a tire plant in Indonesia as the country provides raw materials and lower export tariffs to its main markets in Europe and the US.

Eastern Ogreen project coordinator Fitri Zenitia said her firm would also benefit from a niche market in Indonesia as it specialised in truck and bus tires.

Their country, despite low emission, is exposed to various climate hazards such as cyclones, heavy rain, flooding, extreme temperatures, drought and sea level rise.

In a seminar entitled “Post COP21: Prospects and Challenges for Myanmar”, Harjeet Singh, ActionAid’s international policymaker for climate change, has issued the need for action.

He said civil society and NGOs needed to help the government assess climate impacts and develop plans for adaptation and addressing damage; help generate awareness and develop ways to deal with crises; and conduct pilot projects on various sectors and document learning so that action could be scaled up.

The government needs to bring good examples from other countries that are applicable to the Myanmar context and input into policy and framework development processes. It also needs to measure progress on the implementation of loss and damage work and highlight gaps,” he said.

Singh said the private sector needed to review impacts of their businesses on the environment as well as assess impact of climate change on the businesses. Also, the private sector needed to develop strategies to reduce environmental impacts, and partner with the government and NGOs by sharing their resources – skills, expertise and finance – to implement climate change programmes.

The media can help educate the mass on the current and future impacts of climate change; highlight successful models and strategies to deal with climate change; and draw attention to gaps and areas where more work is required.

He said young journalists should be trained in covering climate change stories to raise awareness of the people. Myanmar ranked 91 in terms of CO2 emissions, according to the

United Nations Framework Convention on Climate Change (UNFCCC), emitting 11.7 million tonnes of CO2 equivalent.

In the national adaptation programme of action, 32 priority activities were specified for adaptation in eight main sectors/themes – agriculture, early warning systems, forest, public health, water resources, coastal zone, energy, and industry; biodiversity.

Singh said that the national plan needed to be broken down into a local one.

“The Myanmar government needs to prioritise adaptation domestically and engage at regional and international levels to exchange knowledge and resources. It needs to assess future loss and damage due to extreme weather and slow onset events and develop sector specific action plans. All development and sectoral interventions should be integrated in terms of policies, programmes and budgets,” he said.

It should also learn from successful models developed by NGOs and local government agencies and work with Asean institutions on knowledge development and sharing of technical and financial resources.

Action needed at the grassroots

“In Myanmar, policies are usually kept at the national level. When it comes to implementation, a lot of issues such as budget and financing arise and it is hard to make it happen successfully. We need to ensure policies are not on paper but in reality,” said Win Myo Thu, director of EcoDev – a non-governmental organisation for advocating civil society development and environmental governance in Myanmar.

He said all the policies should be implemented by the community itself rather than by local authorities. He encouraged consultations with the elders and to promote participation of youth in the action plans.

He lauded the parliament’s move to set up an emergency fund and reserve one-million tonnes of rice in case of emergency. He said such a budget must be set aside for emergency use such as rescue and resettlement of disaster-hit victims. The environmentalist also urged the government to strike a balance between economic policies and environmental protection.

“We need to make a choice. Will we be proactive or free-riding? How we will survive in our economy is really important. We should not depend too much on selling our natural resources. If we run out of natural resources, what are we going to do?” he asked.

He warned that industrialisation could lead to environmental impacts, along with urbanisation. Measures are needed to deal with related challenges.

While urging for the construction of more environmental-friendly hotels and promotion of responsible tourism, he said proper investment in research and development in agriculture was necessary. Rice output was important for the country, but high emission levels from rice plantations should also be taken into consideration, he said.

“Never assume that it is the duty of the government only. Each and every stakeholder needs to participate in environmental protection to ensure better life for all of us. In this regard, all the proposed projects must be carefully considered in the environmental perspective,” said Win Myo Thu.

According the General Statistics Office (GSO), of this sum, over $1.9 billion came from 291 newly-licensed projects, surging 96.6 per cent in the number of projects and 167.5 per cent in the level of capital, while another 137 operating projects, which expanded their investments, contributed $898.3 million. GSO noted that disbursements of foreign direct investment (FDI) also recorded a yearly rise of 15.4 per cent to an estimated $1.5 billion.

During the reviewed period, the manufacturing and processing sector accounted for more than 71 per cent of the total FDI pledged in the country, as it attracted $1.99 billion. This was followed by the entertainment industry, with $210.6 million.

Singapore remained Viet Nam’s largest source of FDI, with $435.2 million and making up 22.8 per cent of the nation’s total new registered FDI in the past two months. It was followed by Malaysia with $233.2 million or 12.2 per cent; South Korea ($202.4 million or 10.6 per cent); and Japan ($160.6 million or 8.4 per cent).

Large foreign investors also included Hong Kong, mainland China, the United Kingdom and Taiwan.

In the first two months, Ha Noi retained its position as the most attractive investment destination for foreign investors. The capital city attracted $242.4 million in investments, totalling 12.7 per cent of FDI pledged in the country.

The northern provinces of Bac Giang and Bac Ninh came in second and third with $206.1 million or 10.8 per cent, and $200.6 million or 10.5 per cent, respectively. They were followed by Ba Ria-Vung Tau Province with $157.1 million; HCM City ($156 million); Dong Nai Province ($143 million) and Ha Tinh Province ($139 million).

Earlier, Nguyen Mai, chairman of the VietnamAssociation of Foreign Invested Enterprises, told online newspaper bizlive that many multinational groups have scheduled to move their production and businesses from other countries in the region to Vietnamto take advantage of the FTAs. Therefore, the Government should guide authorities of provinces and cities to choose suitable foreign investors and technologies to protect the environment and reduce energy usage, he noted. —

In a recent interview, Jason Wan said Taiwan has many “ambitious” plans for trade with Brunei that cover agriculture, oil and gas and healthcare.

“In Asia, we are exempted from visas when we visit Japan, South Korea, Singapore, Malaysia, Thailand and New Zealand. Why is it in Brunei we need a visa?” he said.

Currently, Taiwanese are eligible for a visa on arrival in Brunei.

Wan said many Taiwanese companies wish to increase their presence in the country and bring in their technology that can increase Brunei’s abundance of natural resources.

“In Taiwan, we have the Tropical Fruit Research Centre, where we are able to grow larger than average tropical fruits such as guavas and mangoes through scientific research.

“The tropical fruits in Brunei are more diverse, considering this is a tropical country, (so) Brunei can benefit from Taiwan’s agricultural technology (to) produce these larger than average tropical fruits to be exported,” added Wan.

Navy Chen, director of Taiwanese firm Kuo Sen Enterprise Co Ltd, said the oil and gas industry can also benefit from Taiwan investors as they have the technology to diversify the industry.

“Brunei has plenty of natural crude oil and natural gas that, with the right technology, can be processed into materials for various products,” he said.

He said a lot of Taiwanese companies would invest in Brunei if the sultanate removes barriers such as visas for Taiwan nationals and speeds up the process of obtaining a permit to establish a factory here.

“If this can be achieved, it will bring a lot of foreign investment to Brunei and elevate the country’s economy,” said Chen.

He went on to say that it could also boost tourism to the sultanate as a number of Taiwanese people are interested in spending their vacation here.

“Brunei is very calm and peaceful. It’s a good place for us to relax and de-stress ourselves,” he said.

However, Chen said Taiwan residents prefer to travel to Malaysia and Thailand due to visa exemptions.

The National Centre for Hydro-Meteorology Forecasting predicts the drought and saltwater intrusion will last until June.

The Water Resource Directorate under the Ministry of Agriculture and Rural Development on Thursday sent an urgent message to agricultural department heads of 11 Mekong Delta provinces, urging them to warn local farmers about recurring saltwater intrusion with salinity content registering 4 grammes per litre of water between February 25 and March 7, 2016. The permitted salinity level is less than than 250 milligrammes per litre.

The directorate advised local farmers to take fresh water to be used for both irrigation and daily purposes from river sections about 30 to 45 kilometres away from the mouth of the Mekong river when low and medium tides occur.

Nguyen Van Dong, Director of Mekong Delta Hau Giang Province’s Agriculture and Rural Development Department, said all local rice fields are threatened by the drought and saltwater intrusion.

Thus, the local administration had mobilised all sources in an attempt to tackle the problem. It directed units to reinforce dykes when the salinity surpasses 2 grammes per litre, Dong said.

Lu Van Hung, Chairman of the provincial People’s Committee, said efforts are being taken to drill new wells to be used as water sources and build reservoirs to store water.

Heads of districts and communes will be held responsible if they fail to obey the committee’s directions, he said.

The province also plans to plant a new type of saltwater-resistant rice.

Statistics of the Mekong Delta’s Tien Giang province show that about 9,000 households are living in areas hit by drought and saltwater during the ongoing dry season (from November to April).

In response to the situation, the province has opened an additional 141 public taps to provide water to the households.

A 6.3 kilometre pipe system was promptly constructed to supply 1,200 cubic metres of water daily to local residents in the communes of Binh Dong and Binh Xuan, which have been suffering the most from water shortages.

In terms of long-term action, the Government and the Ministry of Planning and Investment have mobilised official development assistance (ODA) sources totaling about $500 million to upgrade the delta’s dyke and saltwater-resistance drainage systems.

The agricultural ministry also called upon research institutes and scientists to study and test new types of rice that could resist saltwater as a long-term solution to the problem.

Initial statistics from the Mekong Delta provinces reveal that drought and saltwater intrusion have caused an estimated loss of about 150 trillion dong ($6.7 billion) for the delta so far, and the losses are expected to continue surmounting until June.

Deputy Minister Le Quoc Doanh said a total of nearly 340,000 hectare of winter-spring rice crops were affected by the drought and saltwater intrusion, accounting for 35.5 per cent of the delta’s total cultivation area during the winter-spring season.

The ongoing El Nino, which began in 2014 and is considered one of the most intense weather phenomena in at least two decades, was blamed for the severe drought and saltwater intrusion. It also caused rainfall to drop by 10-40 per cent compared to previous years, according to Dao Trong Tu, a senior water expert.

Unlike in previous years, the ministry has moved more quickly in signing the contracts to speed up the construction of infrastructures to support President Joko “Jokowi” Widodo’s economic program. The ministry has drastically cut the bureaucratic red-tape that companies must wade through in order to obtain construction permits.

“We’ve already signed all of the contracts for this year, seven months earlier than last year,” said Energy and Mineral Resources Minister Sudirman Said on Monday in Jakarta, accompanied by Jokowi and Finance Minister Bambang Brodjonegoro.

Twenty four companies took part in the ceremony, representing various contractors. The contractors include giant state-owned energy company Pertamina, state-owned gas distributor PGN and the construction firms Wijaya Karya, Adhi Karya and Hutama Karya.

In his remarks, Jokowi said that Indonesia would need to be more competitive in meeting its food and energy needs in the next 30 years. “I always remind people to focus on food and energy. To achieve that goal we have to build the infrastructure,” he said.

The contract signing on Monday was the third, and by far the largest, wave of contracts that the ministry has signed in 2016. The first two waves, on Jan. 14 and Feb. 2, had a combined value of Rp 545 billion.

Earlier contracts included the construction of natural-gas stations, gas pipeline networks, micro-hydro power plants, solar-powered electric generators, waste-based power plants and bio-gas power plants.

The largest contract, worth Rp 493 billion, was for a gas pipeline project in Prabumulih in South Sumatra. The contract went to three state-owned companies, namely PT Wijaya Karya, PT Nindya Karya and PT Rekayasa Industri.

The SBV Governor Nguyen Van Binh said in Directive No 01/CT-NHNN issued earlier this week that these were needed to support national goals of controlling inflation, stabilising the macro-economy and boosting economic growth in 2016.

The SBV will run the banking system, which includes domestic credit institutions and foreign bank branches, with active and flexible monetary policies in tight conjunction with fiscal and other macro-economic policies.

The central bank targets growth rates of 16 per cent to 18 per cent for total money supplies, and 18 per cent of 20 per cent for overall outstanding loans in the system. The figures may be adjusted based on the practical situation.

It urged lenders to continue to create advantageous conditions for enterprises, co-operatives and households to access loans, helping them enhance efficiency in their production and business activities.

The SBV will continue to speed up the restructuring of credit institutions and drastically handle weak lenders, in a bid to improve lending quality and maintain the bad debt ratio at less than three per cent of the overall outstanding loans.

Governor Binh’s directive is in line with the government’s resolution on socio-economic development plans in 2016, following which this year’s inflation will reach less than five per cent and gross domestic product growth will be around 6.7 per cent.