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Jakarta Post

Industry Ministry seeks investment from Japanese mid-sized companies

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, October 18, 2017   /   02:43 pm
Industry Ministry seeks investment from Japanese mid-sized companies Industry Minister Airlangga Hartarto delivers his keynote speech on 2017 Indonesia Investment Business Forum that gathers 500 Japanese business executives in Tokyo, Japan, on Oct. 17. He especially asks for greater presence of Japanese middle-sized companies in Indonesia. (Courtesy of Industry Ministry/-)

Industry Minister Airlangga Hartarto has requested mid-sized Japanese companies to invest in Indonesia’s manufacturing industry, particularly in the automotive, electronics and food and beverage sectors.

Airlangga said that at present, Japanese investment in the country was still dominated by large corporations, which he described as “big players.”

“Mid-sized [companies] face higher risks, but they cannot just focus on the Japanese market because the economy is stagnant. Therefore, they must consider other economies that are still expanding, and one of them is Indonesia,” Airlangga said in a statement Tuesday.

The industry minister also vowed to provide fiscal incentives that are export oriented and labor-intensive.  

Read also: Japanese investments create 4.7m jobs in Indonesia: Ambassador

Airlangga delivered his keynote speech in the 2017 Indonesia Investment Business Forum in Tokyo on Tuesday, speaking to around 500 Japanese business executives about investing in Indonesia.

Several operators of Indonesia’s industrial estates were also present at the event.

At present, around 1,800 firms have invested in Indonesia, according to data from the Industry Ministry.

Japan is the archipelago's second largest foreign direct investor, funneling US$17 billion so far, this year. Half of the figure was spent in the automotive, electronics and food and beverage industries. (lnd)