Indonesia

MNCs in the News-2016-05-27

At the 8th Strategic and Economic Dialogue talks, the US will press China to improve its business and investment climate. China say it will propose a global investment code at the upcoming G20 summit in Hangzhou. Tsinghua Unigroup’s leadership is unconcerned about the possibilities the new Taiwan leadership may review two of its investments in Taiwanese testing and packaging chip companies. Chinese bidding consortium goes to Malaysia to tout its advantages for the Singapore-Malaysia high-speed rail project. Indian Finance Minister plans to pursue vigorous implementation of a Japan high-speed rail project linking Ahmedabad and Mumbai when he visits Japan at the end of this month. Japanese firms want the United Kingdom to remain in the European Union. South Korean cooperation with Saudi Arabia and Kuwait leads to accelerate of SK Gas Ltd.’s liquid petroleum gas-based gas chemistry business. Frustrated with a stalled legal case, Korea Electric Power Corporation (KEPCO) has decided to pull out of a major Nigerian oil exploration and development project. Indonesia is working hard to finalize all the regulations (new and revised) in its 12 economic policy packages. Global rating agencies seem to like Indonesia’s investment quality. Thailand is pushing Food Innopolis, a food cluster designed to enhance the value of the country’s crops. Vietnam’s inward FDI for the first five months of 2016 grows strongly over the comparable period in 2015. Foreign investors can enter the theater industry in Vietnam.

MNCs in the News-2016-05-20

Chinese committee has been examining technology products (hardware, software, and other) sold by by big foreign companies for security risks. Apple CEO Tim Cook meets with Chinese officials in an additional effort to curry government favor. Beijing Automotive Industry Holding Co. has big globalization plans which include working with foreign government partners. Nissan faces South Korea fines and mandatory recall as well as consumer lawsuits over so-called emissions defeat device. South Korean CJ Group senior managers meet with top level Indonesian delegation to discuss cooperation. At forum in Seoul, Indonesian president welcomes more Korean investment and emphasizes his government’s progress in creating a better investment environment. Indonesian Energy and Mineral Resources Minister Sudirman Said meets with US companies to tout investment opportunities in the energy sector. Thailand and China continue negotiations to settle on cost estimates for the Bangkok-Nakhon Ratchasima high-speed rail project. Uber Technologies press Thai officials to legalize its services. Singaporean investors continue to remain important to Vietnam. Vietnam’s State Capital Investment Corporation and the Russian Direct Investment Fund sign MoU to establish a Russian-Vietnamese investment platform.

MNCs in the News-2016-05-13

Inward FDI into China between January and April rises almost 5 percent over the same period last year. Chinese Premier Li Keqiang touts China’s plan to take measures to encourage greater inward foreign direct investment. China is investigating foreign and domestic drug firms for possible violations of competition laws and regulations. Foreign pharmaceutical firms in China take action to offset profit pressures flowing from government actions. Apple invests $1 billion in Didi Chuxing, following various adverse actions against it in China. Beijing Municipal Court denies Zhujiang Beverage the ability to use the Facebook name on its products. China outward deals in 2016 to date already have topped the figures for 2015. Some Chinese state-owned enterprises are adopting the sovereign immunity defense to escape legal liability in the U.S. SK Group explores cooperation possibilities with Kuwaiti government and businesses officials visiting Seoul. Using investor state dispute measures Hanocal Holdings is suing the Korean government for compensation over excess taxes. Indonesian President urges his Cabinet to do more to improve the ease of doing business and to garner an investment grade rating from Standard & Poor’s. Indonesian Investment Coordinating Board Chairman Franky Sibarani touts his country’s reforms at the HSBC Economic Outlook 2016 conference. Indonesia President Joko “Jokowi” Widodo meets with Chinese State Council Yang Jiechi to discuss investment and trade cooperation. Vietnam calls on foreign firms to contribute more to Vietnam’s economic development.

MNCs in the News-2016-04-22

China’s Ministry of Commerce underscores reasons to be optimistic about inward foreign direct investment flows into China. China experiences a massive creation of foreign-funded enterprises between 2011 and 2015. China’s National Development and Reform Commission will test a “negative list” approach in Fujian, Guangdong, Shanghai, and Tianjin. The American Chamber of Commerce in China expresses concern about China’s policies and what it sees as a lack of serious commitment to reform. In testimony before Congress, Apple denies that it had provided iPhone source code to China. Chinese anti-trust investigators now seem to be turning their attention to Korean firms after targeting German and Japanese firms. China’s Chinese outward foreign direct investment (COFDI) and M&A deals show significant growth in the first quarter of 2016. EY forecasts strong Chinese outward FDI growth averaging 10 percent partly because of the One Belt, One Road program. South Korea’s Fair Trade Commission reports it succeeded in getting Apple to revise the problematic Authorized Service Agreement it had concluded with six Korean repair service providers. Government data indicates the Korea-China Free Trade Agreement is stimulating COFDI into Korea. Indonesia’s President Joko "Jokowi" Widodo will visit four European countries to promote European investment in Indonesia. Denmark concludes Memorandum of Understanding with Indonesia involving capital and technology in exchange for land. Experts call for Vietnam to be more selective in granting tax incentives to foreign investors and encourage it to strengthen its FDI management capabilities. Myanmar grants a license to Vietnam’s military-run Telecommunications Group (Viettel) to build a multi-billion dollar telecommunications network.

MNCs in the News-2016-04-08

China fails to submit new negative list proposal to US. Chinese firms are pouring money overseas driven by a depreciating currency among other factors. The Washington Post calls for a new approach to Chinese outward foreign direct investment (FDI) that takes into account non-traditional risks. ZTE replaces three top executives in reaction to US sanctions and warns of possible further penalties. China’s Beijing Urban Construction Group wins bid to build a US $300 million international cargo hub and airport in Bolivia. Korea Electric Power Corp. wins its first overseas solar power plant contract. Indonesia’s Investment Coordinating Board warns it will annul the investment permits of foreign companies that are avoiding their tax obligations. Indonesia and France work to expand the possibilities for French infrastructure investment in Indonesia. Thailand’s United Power of Asia Plc has signed an agreement with Myanmar’s state utility to construct a gas-fired power plant in the Dawei special economic zone. Russia and the US are competing for investment opportunities in Vietnam. Vietnam moves to increase its harvest of investment, especially FDI, in the agricultural area. Vietnamese representatives court investors from the Chinese mainland, Hong Kong, and Macao at a seminar in Hong Kong.

MNCs in the News-2016-04-01

Chinese Premier Li Keqiang emphasizes China’s willingness to work harder to create a favorable environment for foreign investors. China’s Ministry of Industry and Information Technology stresses that the country’s planned rules on Internet domain names will not affect companies’ “normal operations.” China will set up its first overseas permanent military base in Djibouti. China’s Railway Rolling Stock Corp. aims to win large amounts of business in the developed world. In the face of US Senatorial concerns, Syngenta AG insists a China National Chemical Corp. takeover would not raise security issues. Japan may finance a multi-billion dollar deep-sea port project in Patimban, Indonesia. JR Tokai and its American partner Texas Central Partners (TCP) are going to ask the US Federal Railroad Administration to set new rules allowing an ultrahigh-speed to be built to Japanese bullet train specifications. Mercedes-Benz Korea not rolling along as far as the Korean government is concerned. The Korea Trade-Investment Promotion probes if Korean companies should relocate from the shuttered Kaesong Industrial Complex to Vietnam. Korean businesses and association, in collaboration with the government, will establish a public-private consultative council to boost overseas Korean construction business. Thai Democrats challenge financing model for Bangkok to Nakhon Ratchasima high-speed train line. Vietnamese inward foreign direct investment for the first quarter of 2016 surges over the comparable period a year earlier.

MNCs in the News-2016-03-25

China announces a recall affecting BMW Mini Coopers. Chinese M&A and outward M&A deal values hit record amounts for the year to date. Leading Chinese brands are earning an increasing amount of their revenues from overseas. China Railway Group Limited to invest billions of dollars in an integrated office complex in Kuala Lumpur and will set up its regional headquarters there. China’s Railway No. 3 Engineering Group and SinoFortone Group conclude MOU with Scotland that has the potential for US $14 billion in infrastructure projects. Japan’s Inpex multibillion dollar LNG project in Indonesia may undergo a dramatic transformation due to a Presidential decision to move the project onshore. Korean prosecutors raid Volkswagen’s vehicle inspection center to probe emissions equipment on the German’s company’s new cars. Korea’s GS Engineering and Construction wins US $1.26 billion contract for world’s largest rolling stock and bus base in Singapore. A Korean consortium including Daewoo Engineering and Construction and Hanwha Engineering Construction have won a $18-20 billion housing project in Saudi Arabia. Korean firms will invest in Russian Far East for “fishy reasons.” At the BOAO Forum for Asia, Indonesia Vice President Jusuf Kalla says his country needs to improve its regulatory efficiency. Indonesia aims to secure a 30 percent increase in FDI from China in 2016. Thai Deputy Prime Minister courts South Korean investment. Vietnam grants Samsung Electronics Vietnam permission to establish a USD $300 million research and development project in Hanoi.

MNCs in the News-2016-03-18

Chinese Ministry of Commerce spokesman voices confidence China will remain attractive to foreign investors and promises new efforts. China’s State Power Investment Corp. buys Taralga Wind Farm project for nearly $230 million. Former Turkish energy minister expects China to bid aggressively during the bidding process for Turkey’s third nuclear power plant. China’s Three Gorges International Corp. will bid on Brazil’s Tapajos hydroelectric dam project. Japan’s Toshiba reveals that US Justice Department and US Securities and Exchange Commission are investigating the accounting practices of its US units. Political infighting in Indonesia results in postponement of major oil bloc development by Japan’s Inpex. Japanese firm partners with government controlled Indian private venture on major wind power project across seven Indian states. Bank of Tokyo-Mitsubishi UFJ will become the first Japanese lender to provide Islamic compliant financing through an overseas branch. Influx of Japanese businesses into Myanmar’s Thilawa special economic zone drives drives Myanmar’s CB Bank to open a branch there. Korea Electric Power Corporation (KEPCO) has signed a Memorandum of Understanding with Ecuador linked to its plans to build EV charging infrastructure operation systems in the country. The Korea Rural Community Corporation is expected to secure a government of Gujarat (India) contract for the construction of the Kalpasar sea wall project. Indonesia aims to bring more European investment into the country. The President of the European Association for Business and Commerce called upon the Thai government to embrace a number of changes in order to draw more investment.

MNCs in the News-2016-02-26

China will ban foreign companies, including foreign-invested joint ventures (JVs), from publishing online media, games, and other creative content within China’s borders. Deals involving Chinese companies receive the highest number of Committee on Foreign Investment in the United States (CFIUS) reviews for the third straight year. US administration and Congressional sensitivity to Chinese investments in the US reportedly grows. Indian bullet train deal with Japan leads to new construction and parts opportunities for Japanese companies. Violent protests in Rohtak forces Maruti Suzki to suspend its production activities. Korea Industrial Complex Corporation will help Hoa Khanh Industrial Complex develop industrial symbiosis projects. Korea’s Ministry of Culture, Sports, and Tourism awards integrated casino resort project to U.S. casino operator Mohegan Sun. Indonesia negative list and other policy measures directed at foreign investors draw increasing attention to the country. Indonesia’s Investment Coordinating Board plans to boost foreign investment from Southeast Asia countries, especially Singapore and Malaysia. Indonesia’s cold-storage industry hopes government will act to shape the form and location of FDI in its sector. The Thai Payment Network will issue millions to card to advance government’s national e-payment initiative. Thailand’s Board of Investments will open branches abroad to help Thai companies invest overseas.

MNCs in the News-2016-02-19

China’s State Council will work to expand service and merchandise trade by giving foreign businesses new opportunities. Chinese Ministry of Commerce think tank researcher expects Chinese outbound M&A to hit new record in 2016. Regulatory issues in China and abroad appear to impact some Chinese outward foreign direct investment (FDI). Industrial and Commercial Bank of China Europe) and the Chinese embassy in Spain scramble to react to Spanish police raid in connection with suspected money laundering by ICBC Madrid. COSCO formally declared the preferred bidder for the privatization of of Greece’s Piraeus port. Visit of South Korea’s Trade Minister to eBay Korea’s Incheon facility leads the latter to promise to help small Korean merchants tap the online export market. Volkswagen Korea faces ongoing pressure from Korean regulators in connection with recall orders relating to its emissions-data cheating cars. South Korean outward FDI experiences strong growth in 2015. South Korea accuses North Korea of using Kaesong moneys for its military programs. Korean government agencies mobilize to encourage foreigners to participate in the development of Korean startups. Indonesia’s e-commerce sector lauds government’s plan to open the e-Commerce to FDI. Indonesian president tells businesspeople at US-ASEAN Business Council Conference that his country will undertake more FDI-related reforms. Thai officials express optimism about the Thai-Chinese negotiations about a medium-speed rail project. Vietnamese and American companies strike numerous deals on the sidelines of the US-ASEAN Summit. Vietnam’s southern Binh Dinh Province will take steps to attract more FDI.

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