The Ministry of Industry Offers Industrial Estates to Japanese Investors

JAKARTA The Ministry of Industry (Ministry of Industry) offers a number of industrial zones to Japanese investors who want to invest in the country. The investment is expected to help boost the growth of the national manufacturing industry.

“Of course not only in the automotive sector and components, we also want cooperation in the textile, electronics and food and beverage industries. In fact, it can go to the packaging sector, “said Minister of Industry (Minister of Industry) Airlangga Hartarto, Sunday (1/27).

In the period January-September 2018, Japan is the second largest investor in Indonesia with a value reaching US $ 3.8 billion for 2,731 projects. Then, more than 1,600 Japanese companies operating so far have opened jobs for five million Indonesians.

In order to strengthen the investment, according to the Minister of Industry, it invites the Japanese External Trade Organization (Jetro).

In addition to investment, the two parties also agreed to strengthen cooperation in developing small and medium enterprises (IKM) and build vocational training in Indonesia.

“We convey to Jetro to continue to facilitate link and match between SMIs in Japan and Indonesia, so that the business and economic partnerships between the two countries are stronger. In addition, we also encourage capacity building programs for industrial vocational teachers, “said the Minister of Industry.

In between the activities of attending the World Economic Forum Annual Meeting 2019 in Davos, Switzerland, the Minister of Industry had a meeting with Jetro Chairman Hiroyuki Ishige.

Both of them agreed to deepen the structure of the manufacturing sector in Indonesia.”Hopefully there will be more collaboration between businessmen from both countries, so that they can complement each other and our industry is more globally competitive,” Airlangga said.

He gave an example, steps that can be synergized, for example regarding the development of technology and human resources (HR). This effort not only targets large-scale companies, but also for the IKM sector.

“If we look at it, the number of small industries in Indonesia continues to grow and develop,” he said.

Based on the Ministry of Industry data, the number of small industrial sectors has increased, from 2014 as many as 3.52 million business units to 4.49 million business units in 2017. This means that it has grown to 970 thousand small industries during the four years.

“Moreover, the government has issued a final tax of 0.5% for IKM. This is one of the tangible manifestations of government attention and support for the development of SMIs as the majority sector of the industrial population in the country, “he said.

Therefore, the Minister of Industry hopes that Jetro will more aggressively promote Indonesian IKM in Japan while facilitating partnerships between national entrepreneurs and business people from Sakura. During this time, Jetro has helped Indonesia through the implementation of a business matching program to bring together businessmen from both countries. (EPA)

Source: Ministry of Industry Republic of Indonesia