The coordinating Board of
Investment (BKPM) kept drumming up investors in automotive components to invest
in Indonesia On the occasion of investment Marketing Campaign in Japan on July
28 – 30 last, Head of BKPM Franky Sibarani held a one on one meeting with 3
automotive component companies in Japan. The 3 companies were interested to
invest in Indonesia, but they were concerned about wages formation formula which
was unpredictable in Indonesia. The was BKPM press release received on Monday
(3/8).
Franky stated that as labor intensive industry, the case
of workers’ wages really affected their business. One of the automotive
component industry stated they planned to expand their investment worth USD 72
million to increase production output by 47% and the investment would need
workers numbering 10,000 people.
The three components questioned about the Government’s
step now finalizing the formula of wages increase effective for 5 years. BKPM
also suggested the 3 companies to probe on the possibility of investing in
Central Java or East Java, where wages was not as high that in West Java.
Franky stated that he would make automotive component
industry as one of the focus of marketing because it absorbed labor well,
export orientated and minimized import of component needed by the national
automotive industry. he reminded that after vising one of the aitoi component
factory in Central Java, PT Semarang Autocamp Manufacturing Indonesia (PT SAM)
in June 25 last that the company had
obtained data of business expansion in Jepara where 3,00 workers would be
employed.
Meanwhile the products made, i.e. wiring harness, was
marketed at home and abroad (76% exported and 24% domestic) Export was USD 123
million while domestic sales was USD 32 million.
BKPM data showed that total investment realization in
transportation industry in Semester 1/2015 was Rp.14.92 trillion. The amount
increased by 35% against investment realization of the same period of 2014 at
Rp.10.97 trillion. (SS)
Business New - August 7, 2015
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