US-based Energizer Holdings Inc. plans to relocate its plant from Singapore to Indonesia where demand for batteries has risen by as much as 10% a year, Investor Daily Indonesia quoted an industry ministry official and a company spokesman as saying, Bloomberg reported.
Energizer will make Indonesia its production base for the Southeast Asian region, the newspaper said, citing Budi Dharmadi, the ministry's Director General for Transportation.
The company will invest about $300 million to build a plant with an annual capacity of 500 million batteries on the outskirts of Bogor in West Java, the newspaper said.
Achmad Widjaya, a spokesman at PT Energizer Indonesia, said the decision to move the plant to Indonesia was based on the country's lower costs of production. In addition, the growth of the Indonesian market was encouraging, he said.
"On the calculations, Energizer has chosen to produce in Indonesia in order to reduce distribution costs," he added.