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Taiwanese investor eyeing Indonesian automotive components industry

Jakarta (ANTARA News) – The Indonesian Investment Coordinating Board (BKPM) has identified Taiwanese investor interest in the automotive components industry, especially for the production of automotive lamps, valued at US$50 million, an official stated.

BKPM Head Franky Sibarani stated in a press release received here on Wednesday that the Taiwanese investment interest is a business opportunity that has arisen due to Indonesias investment expansion in several automotive factories.

“The investment expansion in several car factories in Indonesia will benefit its ancillary industries. To support the industry, the boards official representative in Taiwan would promote Indonesia as a location for investment in industrial sectors that support Taiwanese automotive companies,” Sibarani affirmed.

The Taiwanese company and the investment board are currently identifying a suitable location for the project, which requires a land area of 10-15 hectares.

“There is a possibility of building a factory in Karawang and its surrounding area, considering that several automobile assembling factories exist in the area. But, it is still under consideration,” Sibarani remarked.

Head of Investment from the Indonesian Economic and Trade Office (IETO) in Taipei Mohamad Faizal noted that the interest to produce motor vehicle lamps had earlier been preceded by investment commitment received from several motor vehicle tire production companies.

Therefore, automotive industry investment in other supporting sectors will possibly follow.

“We continue to actively promote Indonesia as an investment destination. Taiwanese investors who want to invest in Indonesias automotive industry sector can directly meet the supporting companies leaders,” Faizal said.

According to Faizal, the Taiwanese company currently has two factories in Taiwan, four factories in China, a warehouse in the United States, and a research and development center in Taiwan.

The influx of investment from Taiwan is expected to support the realization of investments in 2016 valued at Rp594.8 trillion, in particular, to contribute to the Foreign Direct Investment, which is set at Rp386 trillion, or 65 percent of the total targeted investment realization.

Source: www.antaranews.com, 16 march 2016