Another Chinese enterprise is determined to invest in Indonesia! On July 12, Hengtong Shares announced that the company plans to invest no more than 600 million RMB in building a digital smart industrial park on Bintan Island in Indonesia. The construction period is expected to last 12 months, and the feasibility study report is currently being prepared.
It must be said that at a time when Indonesia is openly grabbing Chinese corporate assets, there are still Chinese companies rushing to "hand over money" to Indonesia—why is this happening? Could it be because they have too much cash and it's starting to feel uncomfortable? Interestingly, Hengtong Shares has no foreign equity control background—it is domestically controlled—but does have foreign shareholders and cooperation arrangements. In fact, setting aside the so-called autonomy of corporate investment behavior, given the current Indonesian authorities' intent to broadly seize Chinese enterprises' nickel industry chains, which have been deeply rooted in Indonesia for years with hundreds of billions—or even thousands of billions—of investments already made, any enterprise choosing to invest in Indonesia at this moment appears to be engaging in "defying the wind" and suspected of "capital flight."
Moreover, many actual controllers of these enterprises are foreigners, yet they take out massive loans from domestic banks—this is one clear sign of an attempt to move capital abroad while leaving debts behind in China. Over recent years, our foreign trade has consistently maintained huge surpluses; where have all these funds gone? A conscientious economist once said: "Wealth doesn't disappear—it only shifts."
Original source: toutiao.com/article/1870655205514252/
Disclaimer: This article represents the personal views of the author.