TEMPO.CO, Jakarta - Chairman of the Investment Coordinating Board (BKPM) Franky Sibarani has welcomed the intention to invest from a Taiwanese lamp manufacturer wishing to relocate its business to Indonesia.

The intention to invest was conveyed by the Taiwanese investor to BKPM’s representatives in the Indonesian Trade and Economy Office (KDEI) to Taipei, Taiwan on Wednesday, June 8, 2016. Franky said that the business relocation to Indonesia will be carried out because the land on which the company’s factory stood in China will be converted into a commercial area.

The company has set its sight on Salatiga, Central Java, and Yogyakarta for the relocation. Central Java and Yogyakarta has been on the shortlist due to their cheap land price and relatively low wages compared to those of other regions in Java.

BKPM data shows that throughout 2015 Taiwan’s investment stood at US$107.95 million, which consisted of 275 projects and ranked 15th of all countries investing in Indonesia. Financial Times reported that Taiwan’s total outward investment to Indonesia in 2016 was ranked 7th with total investment of US$1.5 billion.

Taiwan’s investment is expected to boost 2016 investment realization of Rp594.8 trillion, particularly contribution from foreign investment that has been set at Rp386 trillion, or 65 percent of the total investment realization to be achieved.

BAGUS PRASETYO