Japan to help Indonesia's small and medium companies

Japan to help Indonesia's small and medium companies

JAKARTA (JP): The Japan External Trade Organization (JETRO)
pledged on Monday to help develop Indonesian small and medium
enterprises which could support the relocation plans of Japanese
factories to Indonesia.

JETRO president for Indonesia, Ikuta Shoichi, said many
Japanese companies wanted to relocate their production plants to
Indonesia because of the low labor costs and the abundance of
natural resources.

"Therefore, it's very important for Indonesia to have a strong
cottage industry," Shoichi said during a media conference at
JETRO's office at the Summitmas I building, Central Jakarta.

Japanese companies are interested in seeing a stronger support
industry, particularly for the electronic and automotive sectors,
that would help cut their production costs if they were to
relocate their plants to Indonesia, he said.

"JETRO intends to help prepare the local support industry for
such investments," Shoichi said.

JETRO will assist the Indonesian government in designing
policy on procedures for investment and exports to benefit
small and medium enterprises.

The program will start next year, he said.

He did not elaborate on the program, which was discussed by a
visiting Japanese economics team in Jakarta last week. The
delegation's visit followed a meeting between Japanese Prime
Minister Keizo Obuchi and President Abdurrahman Wahid in Jakarta
last month.

JETRO in the past has brought in Japanese experts from various
fields to promote Indonesia's industrial development.

Shoichi said that among the experts JETRO would provide were
those from the technical, managerial and governmental fields.

JETRO has also collaborated with business associations, such
as the Association of Electronic and Electrical Home Appliances
Industries of Indonesia (GABEL), and the Association of
Indonesian Automotive Industries (Gaikindo).

Besides bringing in Japanese experts, JETRO also holds
seminars and international exhibitions with the industries it
promotes.

JETRO has also actively promoted other sectors in Indonesia
such as the handicraft and textile sectors, Shoichi said. (03)