Industry Minister Wants Michelin to Build Factory in Indonesia
26 March 2015 14:42 WIB
TEMPO.CO, Jakarta - Minister of Industry Saleh Husin wants Michelin to build a tire plant in Indonesia, along with the France-based tire company's plan to invests in the product's raw materials.
Harjanto, director general of manufacturing industry, said with the presence of the sole agents business expansion in Indonesia, car manufacturers must also develop the production of supporting components.
"Minister [Saleh Husin] has expressed [his views] about the prospects of Indonesia's automotive industry, and he expects Indonesia to become Michelin's production base," he said on Thursday, March 26.
Michelin has invested in natural rubber and rubber synthetics, which are the tire raw materials for making car tires. In the synthetic rubber investment, Michelin works with PT Chandra Asri Petrochemical Tbk, investing some US$400 million.
However, Harjanto said that Michelin still requires time to invest in vehicle wheels.
"They are still assessing the market and their brand image in Indonesia," he added.
BISNIS INDONESIA | RR