Visiting Turkey, Minister Of Industry Agus Wants Turkish Companies To Increase Manufacturing Investment In Indonesia

Minister of Industry Agus Gumiwang Kartasasmita together with the Indonesian Ambassador to the Republic of Turkey Achmad Rizal Purnama and other officials met with the CEO of Kordsa Mr.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita conducted a series of trips to Turkey on June 4-5, 2024.

During his visit, Minister of Industry Agus held a meeting with a number of leaders of Turkish industrial companies who had invested in Indonesia. Starting from companies engaged in the tire industry, textiles, electronics to sea products processing.

First, Agus held a meeting with President of Consumer Durables Arcelik Fatih Kemal Ebi Marijulielu. Arcelik is a household appliance company from Turkey which is the second largest in the world. In Indonesia, the company partners with Hitachi to produce a washing machine at a factory located in Karawang, West Java.

"Arcelik is also planning to develop its production capacity in Indonesia by setting up a new factory for air conditioning and refrigerator products in Semarang," said Minister of Industry Agus in a written statement received by VOI, Saturday, June 8.

Meanwhile, Koc Holding, which is the parent company of Arcelik, acquired and combined ventures with various partners, including Hitachi for the Asia Pacific market to increase its business.

"We invite Arcelik to explore opportunities for new cooperation with Indonesian electronics companies, such as Polytron," he said.

Furthermore, the Minister of Industry Agus met with the CEO of Kordsa Mr.

Currently, Kordsa has factory facilities in Bogor, to produce nylon, yarn and other export-oriented rubber industry preparations.

Kordsa said that in the North American market, the company received competition from China and Vietnam. Related to this, the Minister of Industry said, the Government of Indonesia will provide incentives in the form of super tax deductions of up to 300 percent and Indokordsa (Kordsa company in Indonesia) can submit this. Meanwhile, other incentives will be discussed further.

"The government welcomes if Kordsa is interested in developing products other than those that have been produced in Indonesia. Products that can be developed include the compound concentrate, air bags for vehicles and fiber compounds to strengthen the building structure," he said.

Turkey's total investment in Indonesia during the period 2019 to 2023 has reached 42.758 million US dollars. This puts Turkey in 43rd place among the countries investing in Indonesia.

"We see this situation as a very big opportunity for Turkish companies to develop their business in Indonesia. Therefore, during yesterday's visit, we encouraged Turkish companies to expand their business," he concluded.