Build An AC Factory Worth More Than Half A Trillion, Sharp Asked To Enlarge TKDN

Illustration (Photo: Doc. Kemenperin)

JAKARTA - Minister of Industry Agus Gumiwang Kartasasmita specifically conveyed that PT Sharp Electronics Indonesia (Seid) should maintain its commitment to using a high level of domestic components (TKDN) in production activities in Indonesia.

This follows the progress of the construction of an AC factory with a value of Rp. 582 billion which was groundbreaking in February.

According to the Minister of Industry, the realization of PT Seid's investment is also one of the efforts to continue to support the deepening of the structure in the electronics industry sector.

"In an effort to reduce imports of electronic products, the government encourages import substitution and maintains the industrial business climate," he said in a written statement during a meeting with PT Seid officials, quoted on Sunday, August 14.

The Minister of Industry added that this investment is believed to be able to further spur the structure of the domestic industry so that it can be more competitive and independent.

“Indonesia is a country with the fourth largest population in the world and a strategic geographical location, making it an attractive offer and market potential for global electronics industry players. For this reason, the government is very open to foreign investors who want to come and produce here, both to meet domestic needs and export markets,” he said.

For information, Sharp's newest factory has a land area of 3.3 hectares with a production capacity of 1.2 million AC units with the ability to absorb up to 1,000 workers.

"We received information that as of July 2022 the construction of the AC factory has reached 43 percent," continued Minister of Industry Agus Gumiwang.

Meanwhile, the realization of global investment in the first semester of 2022 was IDR 584.6 trillion, an increase of 32 percent compared to the same period last year of IDR 442.8 trillion.

In detail, the electronics industry sector recorded an investment in the first half of Rp1.19 trillion.