South Korean Firm to Relocate Plant from China to Indonesia



Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - A South Korean company is set to relocate its plant from China to Central Java's Pati district, and is expected to bring in a total investment of US$35 million. Chief of the investment coordinating board (BKPM), Bahlil Lahadalia, and State-Owned Enterprises Minister, Erick Thohir, received confirmation of the planned relocation while visiting South Korea on September 23-24 this year to follow up on the company's plan to invest in Indonesia.

    “This is good news. As per the president's directives, we should actively approach companies wishing to relocate their plants from China and several other countries,” Lahadalia said on Saturday.

    South Korean company PT Sejin Fashion Indonesia will engage in the garment industry and export all of its products. The company is expected to generate up to four thousand jobs in Indonesia.

    "We hope it can help the (national) economy during the (COVID-19) pandemic," the BKPM chief said.

    Sejin is a subsidiary of Parkland Co. Ltd., which has been engaged in the footwear industry in Indonesia for 15 years

    During the meeting with the BKPM chief and State-Owned Enterprises Minister, Sejin also sought the Indonesian government's support to expedite the relocation of its plant to Indonesia.

    The support is related to the technical survey of its machines as non-new capital goods to be relocated from its plant in China, an application for the designation of the plant's location as a bonded zone, entry permits for the company's employees during the COVID-19 pandemic, and tax allowances.

    Approval of the company's application for tax allowances has been the first of its kind issued by BKPM since it was delegated the responsibility by the Finance Ministry.

    Lahadalia said BKPM will continue to encourage Seijin to meet its commercial production target in the fourth quarter of 2020.

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