Introduction

In a recent initiative to bolster economic ties between Hong Kong and Indonesia, Financial Secretary Paul Chan Mo-po has deemed Hong Kong an 'advantageous' destination for Indonesian businesses looking to conduct Initial Public Offerings (IPOs). Speaking at the 'Think Business: Think Hong Kong' symposium held in Jakarta, Chan emphasized the strategic significance of Hong Kong's capital markets in supporting Indonesia's economic ambitions.

Hong Kong’s Strategic Advantages

With Indonesia being Southeast Asia's most populous country, Chan urged its businesses to consider Hong Kong for raising capital and establishing treasury centers. He highlighted the unique geographic advantage of Hong Kong, situated close to mainland China, as a pivotal factor that enhances its appeal as a financial hub. At the symposium organized by the Hong Kong Trade and Development Council (HKTDC), Chan declared, 'Indonesian companies listed on the Hong Kong exchange will be able to tap into both international and mainland capital.'

Funding Infrastructure Development

Chan pointed out that the fundraising capabilities available in Hong Kong align perfectly with Indonesia’s vision for infrastructure development, aiming to double the country's per capita GDP by 2045. 'We strongly encourage your infrastructure projects to seek funding opportunities in Hong Kong,' he stated, highlighting the growing necessity for significant investments in this sector.

Geopolitical Adaptations

As geopolitical tensions evolve, Chan noted that many businesses are adapting by diversifying supply chains and industry across various Global South nations. He stressed that Hong Kong is equipped to provide essential services including corporate treasury management, logistics consultancy, and an extensive network of international connections to facilitate these changes.

Hong Kong’s Growing Role

The symposium underscored Hong Kong's reputation as a global business, innovation, logistics, and offshore renminbi hub. Impressively, Hong Kong has now emerged as Indonesia's second-largest foreign investor, climbing from its previous fourth position in 2018, as per HKTDC reports. Moreover, Indonesia ranks as Hong Kong's sixth-largest trading partner within the ASEAN bloc.

Conclusion

Accompanying Chan were prominent business figures such as Asia Financial Holdings chairman Bernard Chan and Swire Pacific chairman Guy Bradley, along with over 40 representatives from Hong Kong’s tech sector, including various start-up innovators. This outreach not only aims to strengthen economic ties but also highlights Hong Kong's role as a leading financial platform in the region. With the promise of collaborative projects and mutual growth, both nations stand on the brink of an exciting new chapter in business and economic relations.