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)