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|25 March 2010
Japanese electronics firm to move factories to Indonesia
Japanese electronics maker Panasonic Corporation plans to relocate factories from Japan and Vietnam to Indonesia sometime this year, the Jakarta Post quoted the Investment Coordinating Board (BKPM) as saying Wednesday.
Panasonic will build factories outside Java island, with an estimated investment between $40 million and $45 million, BKPM’s chairman Gita Wirjawan said after a press briefing on the Indonesia Summit in Hotel Shangri-la in Central Jakarta.
“They have communicated with us, and it seems [the plan] can be actualised this year,” he told reporters.
Panasonic is considering the relocation because Indonesia has a huge population of about 230 million, based on the latest data released by the Central Statistics Agency (BPS), he added.
“Business opportunities everywhere always refer to the population scale of a country. Besides, Indonesia’s purchasing power keeps increasing,” Gita said.
According to the BPS, in 2009 Indonesia’s per capita income reached $2,590.1, a 14 percent increase from $2,269.9 in the previous year.
Gita also said 20 companies in Thailand also planned to build factories for automotive spare parts in Java island this year. “Thailand is expert in automotive, but now they’re looking at Indonesia,” he said.
Another Japanese electronics giant Toshiba had earlier said that it had chosen Indonesia as the company’s regional production hub for liquid crystal display (LCD) television sets and had relocated its Vietnamese factory to Indonesia to boost its operation in the country. Indonesia will be the only production base for Toshiba LCD TV in Asia and Oceania, the company said recently.
The BKPM expects investment to grow by 15 percent this year as Indonesia has become an attractive investment destination after scoring a significant 4.5 percent growth last year, according to the BPS.
Investment last year grew by 3.3 percent. The 4.5 percent economic growth was almost 60 percent fueled by household consumption, the BPS said.
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