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S. Korean company to build shoe factory in Central Java

Jakarta | Mon, July 11 2016 | 01:15 pm

A South Korean company has expressed its commitment to build a shoe factory with total investment of US$150 million in Jepara, Central Java.

Investment Coordinating Board (BKPM) head Franky Sibarani said on Monday the board had issued a principle permit for the company that would start construction this year.

“There are some issues such as electricity supply that should be discussed. But they are serious. We expect not just one company, there are some more to come,” Franky said at the State Palace after attending an open house gathering hosted by President Joko “Jokowi” Widodo.

He also said the government had offered the company, whose factory is expected to create between 10,000 to 15,000 jobs in the region, some incentives such as a tax holiday.

The BKPM will try to persuade more foreign companies from a number of countries like South Korea and Taiwan to invest in labor-intensive sectors, the official said.

“A Taiwanese company is also interested in the footwear industry. BKPM already issued the permit,” Franky said.

The BKPM’s office head in South Korea (Seoul IIPC), Soejoedi Imam, said he would follow up closely on the investment plan to make sure it could be materialized as soon as possible.

According to the board’s data, South Korea was the sixth biggest investor in Indonesia in the first quarter of 2016 with investment worth $188 million consisting of 435 projects. The investment generated employment of 28,349 workers.

Source: www.thejakartapost.com, 11 July 2016