During a recent symposium in Jakarta, Hong Kong's Financial Secretary Paul Chan Mo-po emphasized the city's potential as a vital capital-raising center, encouraging Indonesian companies to consider Hong Kong's advantageous capital markets. Chan stated that Hong Kong's proximity to mainland China and its robust stock exchange positions it as an attractive locale for fundraising, especially for Indonesian companies seeking to tap into both international and Chinese investment.

Speaking at the "Think Business: Think Hong Kong" symposium, Chan articulated that the city could significantly assist in financing critical infrastructure projects under Indonesia's ambitious 2045 development plan, which aims to double per capita GDP. "We encourage your infrastructure projects to seek funding in Hong Kong," he remarked, highlighting the potential for fundraising in a market ranked fifth globally for IPO proceeds.

Despite these appeals, some within the Indonesian business community remain hesitant. The vice-president of the Indonesia Chamber of Commerce in Hong Kong, Brian Chan Pak-lam, noted that many businesses still lack familiarity with Hong Kong's financial landscape, often opting for Singapore instead. He suggested that enhancing promotional efforts would better inform Indonesian firms of what Hong Kong has to offer.

The symposium drew over 100 Hong Kong delegates, including senior executives and representatives from the city's tech sector. Prior to the event, Chan held discussions with Indonesian officials, including finance minister Sri Mulyani Indrawati and economic affairs coordinating minister Airlangga Hartarto, to explore strengthening trade and finance ties between the two regions.

According to the Hong Kong Trade and Development Council, Hong Kong is currently the second largest foreign investor in Indonesia, contributing approximately US$5.5 billion in foreign direct investment (FDI) in 2022, making it the third-largest source of FDI in the country.

Chan’s visit also comes at a time when Hong Kong is looking to bolster its economy amid rising domestic deficits. The city’s financial chief sees the need for overseas investments as crucial for the recovery and growth of Hong Kong’s economy. Additionally, he pointed out that current geopolitical tensions are motivating companies to diversify their operations, which could increase interest in Hong Kong's services as a “superconnector” to the Greater Bay Area and beyond.

While the enthusiasm for Hong Kong’s financial capabilities is strong, recent data indicates that the Indonesian Stock Exchange has seen a notable decline in IPO activities, dropping 42% last year from the previous year. In comparison, Hong Kong’s financial landscape has remained robust, showcasing its potential as an attractive option for Indonesian firms looking for fundraising opportunities.

For more insights on this initiative, visit the original articles from the South China Morning Post: first article and second article.