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Jakarta Post

Japanese investors focus on local potential

  • Aditya Suharmoko

    The Jakarta Post

Jakarta   /   Wed, March 12 2008   /  01:36 am

To attract more foreign direct investment (FDI) from Japan, Indonesia needs to take a good look at what's happening in local markets. The reason is that motives make Japanese investors go overseas have shifted -- from a need for low production costs to an interest in the potential of local markets, a seminar concluded on Tuesday. "Previously, Japanese investors considered low production costs, including the cost of labor and raw materials, the main reason for investing in a country. "Now they consider local market, including future growth potential and the size of the market, as the main factor," Japan Bank for International Cooperation (JBIC) senior economist Susumu Ushida told the seminar. JBIC data showed Indonesia in 2007 as the 8th most-promising country for overseas business, far below neighbors Vietnam and Thailand, coming in third and ...