Japanese investors keen on RI despite car policy: Sanwa
Japanese investors keen on RI despite car policy: Sanwa
JAKARTA (JP): A Japanese research group said yesterday
Indonesia remained an attractive place for Japanese investors to
do business despite its controversial national car policy.
The president of Sanwa Research Institute and Consulting
(SRIC) Corporation, Nobutaka Yamamoto, said here yesterday that
Japanese firms were highly confident about investing in
Indonesia.
"So far there has not been a single Japanese firm which has
canceled its investment commitments here because of the national
car policy," Yamamoto told a press conference to mark the opening
of SRIC's Jakarta representative office.
He said most Japanese firms, especially those with operations
in Indonesia, were closely following the development and
implementation of the national car policy.
"I think the Japanese agree with the idea of developing a
national car. Every country has the right to build its own
national car. We just have different perceptions on how to
implement it," Yamamoto said.
Local automotive analyst Suhari Sargo said yesterday he
doubted the introduction of the national car, called Timor, would
discourage foreign investors, arguing it did not pose a
significant threat to existing car producers, mostly Japanese-
affiliated firms.
Yamamoto agreed that the national car issue would not
discourage Japanese investment in Indonesia, especially non-
automotive investment.
What matters most for Japanese firms intending to invest
abroad is political, social and economic stability in the host
countries, he said.
"And for countries like Indonesia, Malaysia and Singapore,
such political, social and economic stability is something
guaranteed," he said.
He said what attracted Japanese firms to Indonesia most was
its infrastructure, such as seaports and airports near industrial
estates and its free foreign exchange regime, which did not
restrict international flows of capital.
But, he said, most Japanese firms were disappointed with
Indonesian workers: "Low quality labor usually makes unqualified
products. That is what matters to Japanese firms."
He said Japanese firms wanting to export from Indonesia would
look for factors which could undermine their competitiveness
abroad, including policy issues, before investing here.
He said many Japanese firms in Indonesia were export oriented,
but there was a trend that more Japanese investors were arriving
to tap Indonesia's huge domestic market.
If they choose to target the domestic market, Japanese firms
will pay more attention to distribution networks, road
infrastructure and consistent government policy, he said.
SRIC Corporation is one of Japan's three largest consulting
firms, serving over 10,000 companies, mostly Japanese. The
Jakarta office is its second overseas representative office after
its office in Shanghai, China.
SRIC Corporation managing director Morio Miyazaki said the
Jakarta office aimed to provide information for Japanese firms
here and in Japan about the business environment and
opportunities in Indonesia. (rid)