Indonesian President Joko Widodo (Photo: AFP/VNA)Jakarta (VNA) - Indonesian President Joko “Jokowi” Widodoannounced on June 30 that seven foreign companies had confirmed plans torelocate production facilities to Indonesia, mostly from China.
This is an encouraging signal for the country’s investment climate amid the COVID-19pandemic, he said.
Therelocation of factories of the seven companies, including the industrialconglomerate LG of the Republic of Korea and Japanese electronics giantPanasonic, is estimated to bring investment of 850 million USD to the countryand potential employment for 30,000 workers, according to the InvestmentCoordinating Board (BKPM).
Other companies that have reportedly confirmed their relocation includeTaiwan-based audio equipment maker Meiloon, Japanese rubber productsmanufacturer Sagami, US-based light product maker Alpan, Taiwan-basedtire-maker Kenda and Japanese automotive component manufacturer Denso.
Speakingduring his tour of the newly established Batang Industrial Park, Widodo orderedministers and BKPM leader provide the best services for the companies duringthe relocation process.
Healso revealed that 17 more companies were looking to open facilities inIndonesia. BKPM data show that the potential relocation and facilitiesexpansion of the 17 companies will bring in total investment of 37 billion USDand provide employment for 112,000 people.
Accordingto Indonesian government data, Panasonic relocated its facilities to Indonesiato turn Southeast Asia’s biggest economy into its export base for homeappliances. Meanwhile, LG Electronics moved its facilities from the Republic ofKorea as it planned to turn Indonesia into its regional hub to expand itsmarket in Asia and Australia.
The coronavirus outbreak has strained Indonesia’s foreign direct investment, asprojects have been delayed as a result of social restrictions to contain the spreadof the virus. Indonesia has booked a 9.2 percent year-on-year decline inforeign direct investment (FDI) to 98 trillion Rp (6.8 billion USD) in thefirst quarter of 2020.
To take advantage of the situation, the Indonesian government has established aspecial task force to attract businesses leaving China and facilitate theirrelocation to the Southeast Asian country./.
VNA
