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Jakarta Post

Pegatron investment in Batam not yet confirmed: BKPM

  • Rachmadea Aisyah

    The Jakarta Post

Jakarta   /   Fri, December 14, 2018   /   08:36 am
Pegatron investment in Batam not yet confirmed: BKPM Investment Coordinating Board head Thomas Lembong (JP/Donny Fernando)

The government has yet to receive the final word on a US$1 billion investment to build a manufacturing site in Batam, Riau Islands, from China-based Pegatron Corp., a major assembler of Apple iPhones.

Investment Coordinating Board (BKPM) head Thomas Trikasih Lembong said on Thursday that President Joko “Jokowi” Widodo and Vice President Jusuf Kalla had acknowledged the investment plan during a recent cabinet meeting.

However, the government would still need to compete with its neighbors, such as Vietnam and Thailand, to secure the investment, Thomas said, adding that the planned investment was part of the impact of the ongoing trade war. 

“This is an example of an [investment] potential as an impact of the trade war between the United States and China,” Thomas told reporters on the sidelines of a World Bank seminar in Jakarta.

“[However], if we are offering less incentives than our competitors, it is likely we will see smaller or even no investment [from Pegatron].”

On Dec. 3, listed electronics manufacturer PT Sat Nusapersada announced its partnership contract with Pegatron to assemble various electronic products that would be exported to the US.

The tariff war between the two economic giants had prompted many companies, including Pegatron, to “leave China and enter  ASEAN countries, including Indonesia,” Sat Nusapersada president director Abidin Fan was quoted as saying in a statement published by the Indonesia Stock Exchange. (bbn)