Government Optimistic Occurrence of Increased Industrial Investment Flow Especially from Japan

By : Ridwan And Aldi Firhand. A | Monday, October 16 2017 - 22:18 IWST

Minister of Industry Airlangga Hartarto meets CEO of Asahi Glass Co. Ltd. (AGC) Japan, Takuya Shimamura
Minister of Industry Airlangga Hartarto meets CEO of Asahi Glass Co. Ltd. (AGC) Japan, Takuya Shimamura

INDUSTRY.co.id - Jakarta- Minister of Industry Airlangga Hartarto is optimistic to increase the investment flows of industrial sector that will enter in Indonesia especially from Japan.

According to Ministry of Industry data, by 2016, overall foreign investment recorded reached 16.68 billion US dollars.

Meanwhile, the value of Japanese investment to Indonesia amounted to 5.4 billion US dollars in 2016 or an increase of 86 percent over the previous year which reached 2.9 billion US dollars.

The number of Japanese companies in Indonesia to date more than 1,750 companies, with its business activities in manufacturing, infrastructure and services. Several Japanese manufacturing sectors are quite active in investing in Indonesia, including the automotive industry, metal, machinery and electronics.

"This is also supported by the number of supporting facilities in running the business in the country, including the deregulation or simplification of policies, infrastructure development and industrial estate, and the provision of fiscal incentives in the form of tax allowance and tax holiday," said Airlangga, Monday (16 / 10/2017)

In order to attract Japanese investors, Ministry of Industry has held Investment Promotion activities of Indonesian Industrial Zone in Tokyo, Osaka and Yokkaichi City, Japan, on 13-15 September 2017.

The minister of Airlangga affirmed that the company not only encourages investment from large-scale Japanese manufacturing companies but also seeks cooperation with the development of technology and innovation, human resources, and small and medium industries (IKM) in Indonesia.

"We always convey, Indonesia has a huge domestic market potential, especially at ASEAN level. In order to improve the investment climate in Indonesia, the government has issued several packages of economic policies that aim to facilitate the business for investors," he explained.

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