JAKARTA. At least three Japanese companies will relocate their factories from China to Indonesia with a total investment value of US$ 218 million. The relocation is in the midst of slumping Japanese investment in Indonesia in 2020 due to the pandemic.
The Ministry of Industry noted that the three companies were Panasonic Manufacturing (worth US$ 30 million), Denso (US$ 138 million), and Sagami Indonesia (US$ 50 million).
Minister of Industry Agus Gumiwang Kartasasmita said that Japan is a strategic partner for Indonesia, with bilateral trade relations that continue to increase with an average growth rate of 5.06% from 2014 to 2019. So Agus hopes that Indonesia and Japan will continue to increase comprehensive economic cooperation, especially in the industry sector.
Agus in his press release on Sunday (28/2/2021) revealed that the Toyota Group expressed interest in investing US$ 2 billion and was committed to supporting the Indonesian government in its efforts to reduce carbon emissions by producing hybrid and electric cars.
The total Japanese investment in 2019 was US$ 4.31 billion, falling to US$ 2.58 billion in the January-November 2020 period due to the pandemic. (AM/LM)