Japan Expresses Interest in Indonesia`s Auto Component Factory

TEMPO.CO, Jakarta - A company in Japan`s Okayama Prefecture is interested in the automotive component business in Indonesia, Okaya Prefecture Governor Ryuta Ibaragi said.

During his visit to the Indonesian Capital Investment Coordinating Board (BKPM) here on Friday, Governor Ibaragi said the automotive component company, which has supplied components for Mitsubishi cars, was interested in developing an auto component factory in Indonesia.

"There are 422 companies from Okoyama Prefecture that have made investments outside Japan. In Indonesia, we have a number of large companies which made investments," he said, in a written statement made available in Jakarta on Saturday.

Meanwhile, Okayama Prefecture's governor said there is considerable interest among Japanese businessmen to conduct business in Indonesia. However, there are a number of concerns about the investment climate in Indonesia from investors from the Prefecture Okoyama, he said, including the problem of the country's unpredictable wage system.

Ibaragi said that during his visit in Indonesia he found Indonesians to be quite open to Japanese companies.

"Regarding the MRT project, we thank the Indonesian government for its trust in a Japanese company. Of course, we will not ignore it and will maintain that trust," he said.

BKPM Chief Franky Sibarani said Japanese companies were given priorities regarding assistance from investment facilities.

Japanese investment is the main component of the economic growth driver in Indonesia, he said.

"We are ready to assist investment from Japan. The Marketing Office for the Japan area and the BKPM representative office in Tokyo could be used by investors and companies in Okoyama to plan business activities in Indonesia," he said.

He noted that his office was planning to conduct an investment promotion in Yokoyama early next year to win over interest by Japanese investors.

"One of the major investors is Sumitomo. We will invite a number of companies which have made investments in Indonesia to share their successful experiences with their colleagues in Japan," Sibarani said.

In the first half of this year, Japan was ranked third in foreign investments, amounting to US$1.6 billion after Malaysia (US$2.6 billion) and Singapore (US$2.3 billion).

Coming next were South Korea (US$0.8 billion) and the United States (US$0.6 billion).

ANTARA