Taiwan Mulls the Relocation of its' Industrial Base to Indonesia  

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  • Pekerja mencoba kuwalitas batrai Smart Phone OPPO di Pabrik OPPO Indonesia, Tangerang, 25 Agustus 2015. Nilai Investasi OPPO untuk mendirikan pabrik di Tangerang sebesar US$30 juta. Tempo/ Aditia Noviansyah

    Pekerja mencoba kuwalitas batrai Smart Phone OPPO di Pabrik OPPO Indonesia, Tangerang, 25 Agustus 2015. Nilai Investasi OPPO untuk mendirikan pabrik di Tangerang sebesar US$30 juta. Tempo/ Aditia Noviansyah

    TEMPO.CO, Jakarta - Representatives from Taiwan's trade delegations have stated that they are mulling the option of relocating four of its' industries into Indonesia - namely their shipyard, steel, electronics, and oil refineries.

    "Several delegates have expressed their interest in shifting their focus towards Indonesia," said the Director General for Metals, Machineries, Transportation and Electronics for the Ministry of Industries, I Gusti Putu Suryawirawan in Jakarta on Monday, AUgust 31, 2015.

    Suryawirawan said several industries are currently weighing the option, but Taiwan China Steel - a steel producer - have confirmed that they will indeed build a plant, in conjunction with PT Artha Metal Synergy as their Indonesian partner.

    "They ware slated to sign a Memorandum of Understanding on Tuesday, August 1, 2015," said Suryawirawan, who added that the Taiwanese company plans to establish a complete industry - from the processing of its' ores to other, downstream industries.

    Both companies, according to Suryawirawan, are planning to turn Indonesia into a production base.

    After the signing of the MoU, several feasibility studies will be launched regarding their business model, which will have to be satisfied prior to the final signing of the joint-venture.

    Once the final feasibility study is completed, the Ministry could gauge the value of the investment, as well as the size of the plant, as well as the kinds of products that the plant will churn out. "From experience, an established plants usually commands some US$300 million, or Rp  trillion," said Suryawirawan.

    Suryawirawan also added that Taiwanese cellphone-maker is planning on cooperating with PT Telesindo to produce a product known in Indonesian markets as Ti-Phone.

    "We have received reports that they will also form a joint-venture, and an MoU have been signed. That said, I don't known the number and the nature of the investment for this particular case," said Suryawirawan.

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