Thu, 25 Jun 2015

The Investment Coordinating Board (BKPM) hopes to attract more Japanese and Chinese investors to open factories in the country after others have proven successful in business here.

“We fully support investment efforts by both lots of investors as their industries are labor-intensive ones that absorb a lot of workers and are export-oriented, all of which is in line with the government’s intention to increase added value for the economy,” BKPM head Franky Sibarani said at a press conference on Wednesday. Franky said senior BKPM officials visited two factories owned by Japanese and Chinese investors in Central Java early this week. He said the two companies were doing well and had helped increase exports from the province.

One of the companies is PT Semarang Autocomp Manufacturing Indonesia (SAMI), an automotive components producer under Japan’s Yazaki Corporation, which operates a factory in Jepara regency.

Franky said Yazaki owned five other similar manufacturing companies across Java, with only two of them located near Jakarta. The other company is PT Sumber Samudera Indonesia (SSI), which is a joint venture between Indonesian and Chinese investors. It is engaged in the production of processed fish. As an effort to push more investment, Franky said the BKPM planned to meet Yazaki’s management in Tokyo, Japan, at the end of July to learn more about the group’s plans in Indonesia over the next five to 10 years.

“The group has a presence in 44 countries, including Indonesia, where 76 percent of its products are exported and 90 percent of its raw materials come from local sources. In Indonesia, the group employed 26,871 workers as of May,” he added.

Also in Semarang, the BKPM visited the construction site of a plant owned by PT SSI.

Franky said the Chinese joint venture plans to invest another US$15 million in the near future to expand its business.

BKPM deputy director for investment monitoring and implementation Azhar Lubis said PT SSI, which partners with local shrimp farmers and fishermen, was proof that China had started to honor its investment pledges, especially in the maritime sector as one of prioritized government’s programs. “The company plans to export all of its products to European countries with 100 to 150 tons of raw material needed per day. As they will have a large cold storage, the company’s management has said that they will need a stable supply of electricity,” Azhar said.