Minister Of Industry Invites Aichi Japan To Increase Investment And Build Factory In Indonesia

Minister of Industry, Agus Gumiwang Kartasasmita. (Photo: Doc. Ministry of Industry)

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita during his visit to Japan invited companies from Aichi Prefecture to increase investment, build new factories and R&D centers in Indonesia.

"Our meeting with the Governor of Omura aims to invite industrial companies based in Aichi to invest in the construction of new factories and R&D centers in Indonesia. We also offer special incentives for these investments," said the Minister of Industry in Nagoya after meeting the Prefectural Governor Aichi Hideaki Omura, through a written statement, quoted from Antara, Tuesday, June 28.

Aichi is a prefecture that is the manufacturing center of Japan. In 2021 the value of investment from Japan in Indonesia will reach 1.7 billion dollars with the number of investment projects increasing by 34 percent from 3.646 projects in 2017 to 5.579 projects in 2021.

Japan's biggest investments in Indonesia include the motor vehicle industry, metal, electronics, and medical precision and optical instrument industries.

The Minister of Industry explained that since 1977 until now, Aichi has maintained its position as the largest exporting prefecture of manufactured products in Japan, especially automotive and aerospace. The prefecture is also a center of concentration for the automotive industry and the largest automotive supporter in the world.

A total of 255 industrial companies from Aichi invest in Indonesia, particularly in the automotive sector, controlling about 40 percent of the total Japanese companies investing in the country.

"With a large industrial scale, in Aichi there are also many R&D centers for the manufacturing industry, both managed by public organizations and private companies. We encourage R&D centers to expand their operations in Indonesia so that technology transfer can occur which will also support the development of industrial companies from Japan in Indonesia," explained the Minister of Industry.

The Minister of Industry explained to the Governor of Omura the advantages of investing in Indonesia, including skilled Human Resources (HR) with the capability to work on R&D projects, as well as the availability of raw materials to support the supply chain of new investments.

The Minister of Industry also expressed his desire to expand the market for Indonesian industrial companies, so that they can become part of the Aichi industrial supply chain.

According to him, the Aichi manufacturing company can take advantage of investment opportunities in the superchip, ceramics and building materials industrial sectors, industry 4.0-based technology, and machinery production.

The Minister of Industry also said that there are many industrial estates in Indonesia that are ready to accommodate investments from these companies.

"We also have proposed industrial areas according to the specific needs of Japanese manufacturing companies," he said.

Therefore, it is necessary to explore cooperation between Aichi Prefecture and West Java Province.

"West Java is also the center of the automotive industry in Indonesia and the potential of the industrial area is still very prospective," added the Minister of Industry.

Aichi Prefecture Governor Hideaki Omura said Indonesia is a strategic and important partner for Japan, especially for Aichi Prefecture.

For this reason, he asked for support from the Indonesian government, especially the Ministry of Industry, regarding the ease of doing business for Japanese companies.