Minister Of Industry Agus Gumiwang Appreciates Kohler Manufacturing For Investing IDR 14.5 Trillion To Build A Factory In Cikarang

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

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita expressed his appreciation to PT Kohler Manufacturing Indonesia which has realized an investment of Rp. 14.5 trillion to build a new factory in Cikarang, West Java, with a capacity of one million units of sanitary ceramics.

"Kohler is an iconic global brand and we are proud to see this company expand its manufacturing operations in Indonesia. The company's investment will bring leading business to the industrial sector in the country, thereby opening hundreds of good jobs to the region's fast-growing manufacturing landscape. ," said the Minister of Industry through his statement, quoted from Antara, Tuesday, August 16.

The Minister of Industry said that since January 2022, the production realization of PT Kohler Manufacturing Indonesia has penetrated 239,000 units. The company from the United States has a workforce of 429 people and will absorb more than 1,000 workers once production capacity runs full.

The potential of the sanitary ceramics industry in Indonesia is currently supported by 10 companies spread across Java and Sumatra, with utilization throughout 2015 to 2018 tending to be stable at 89 percent.

However, due to the pandemic, utilization fell to 59 percent in 2019-2020 due to reduced demand and the global economic slowdown.

"However, starting in 2021, utilization will rise again to 62 percent," added the Minister of Industry.

Meanwhile, the export performance of national sanitary ceramics in the first semester of 2022 increased by 8.97 percent compared to the first semester of 2021.

"The sales of PT Kohler Manufacturing Indonesia's products by 90 percent will be aimed at fulfilling the export market, including to the United States and Asia Pacific countries," said the Minister of Industry.

The Ministry of Industry is determined to continue to maintain the protection and sustainability of the business climate, including for the ceramics industry sector.

During the first semester of 2022, there were four investment realizations in the ceramic industry sector, three of which were located in the Kendal Industrial Estate, Batang, Mojokerto, with a total investment of IDR 3.2 trillion. While the fourth is the investment of PT Kohler Manufacturing Indonesia.

The Minister of Industry put forward policies that support the growth of the sanitary ceramics industry in Indonesia, including through the provision of tax allowance incentives and certain Natural Gas Price (HGBT) facilities of 6 US dollars per MMBTU.

"PT Kohler Manufacturing Indonesia is currently listed as a recipient of HGBT with an allocation of 0.07 BBTUD," he said.

Meanwhile, Kohler Co CEO David Kohler said that the inauguration of Kohler's first kitchen and bath factory in Indonesia marked the company's long-term commitment to support the Indonesian economy.

"This factory is our first manufacturing facility in Indonesia, thus complementing more than 50 manufacturing locations around the world," he said.

According to him, Indonesia is a strategic market for Kohler. The establishment and operation of the new factory is a milestone for Kohler, which has been present in Indonesia for 35 years.

"We hope to continue to serve our customers through investment and special distribution in Indonesia," he explained.