Korean Investor Soon to Build Cable Factory in Karawang West Java
By : Herry Barus And Aldi Firhand. A | Tuesday, June 19 2018 - 19:58 IWST
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INDUSTRY.co.id - Jakarta - Indonesian Ambassador to South Korea, Umar Hadi, welcomed the cooperation agreement between South Korean company LS Cable & System and Indonesian company PT Artha Metal Sinergi to build an electric cable factory in West Karawang, West Java.
The decision to establish a plant on an area of 64,000 square meters with a value of 50 million US dollars in the Artha Hill area is very precise, said Umar Hadi while witnessing the signing of a cooperation agreement between LS Cable & System with PT Artha Metal Synergy in the Embassy of Seoul on Monday (18 / 6/2018)
In a statement received in Jakarta on Monday, the Ambassador hoped the plan to build a cable factory could meet the government's target of distributing sufficient electricity in all corners of the archipelago and the target would be more easily realized.
"I call Indonesia in the formula 3 + 2. The three main things that make Indonesia the best place are the size of the existing market, access and availability of raw materials and the abundant number of labor force. In addition, the two driving elements are the pro-Indonesian Government of Indonesia and Indonesia is also a safe country, "said Ambassador Umar while quoting this week's release by Gallup Report, Switzerland-based international polling agency, which places Indonesia as the world's top 10 safest countries.
The plant is ready to operate by the end of 2019 and is targeted to generate sales of 100 million US dollars in 2025.
Attending the signing of the joint venture agreement are the President Director of PT Artha Metal Synergy Felix Efendi, Artha Graha Network Panji Yudha Winata and his Korean partner, CEO and CSO LS Cable & System Ltd. Myun Roe-Hyun and Ju Wan-Soeb.
Also witnessing the signing was the Director of Indonesia Investment Promotion Center in Seoul Imam Soejoedi.
Meanwhile, CEO of LS C & S CEO, Roe-Hyun Myung, said "Indonesia is one of the fastest growing countries in the world that has become an attractive market that gained momentum during the visit of South Korean President Moon Jae-in to Indonesia last November. "
In response to this deal, AMS CEO Felix Effendi said that the joint venture is strengthening the two-sided cooperation. "Our joint venture not only signifies the collaboration of the two companies, but also strengthens the bonds of cooperation between the two countries," he said, explaining that the joint venture will utilize the expertise and experience of each party and provide a significant technology transfer process from one cable manufacturer the best electricity in the world.
LS C & S was established since 1962. In the last 56 years, LS C & S has grown to become one of the largest power cable manufacturers in the world by utilizing innovative technology in its products. With the establishment of this plant in Indonesia, LS C & S will have seven production companies in Asia, including in China, India, Myanmar and Vietnam.
On the other hand, AGN's business space spans many sectors throughout Indonesia, such as property, finance, agriculture, and hotels.
Indonesia itself is the largest consumer of electrical cable in ASEAN with growth of more than 8 percent per year. This is driven by government policy in massive infrastructure development, especially in the field of electrical energy and construction.