The Jakarta Post
The prolonged trade war between China and the United States has prompted at least two Chinese toy makers to relocate their assembly plants to Indonesia, the Indonesian Toy Makers Association (AMI) said on Sunday.
AMI chairman Sutjiadi Lukas said two Chinese investors had expressed interest in constructing factories in Indonesia for assembling baby strollers and wooden toys. He said they were particularly looking at locations in bonded zones, as they would be producing products intended for export.
“They want to avoid the 25 percent tariff imposed on Chinese products, particularly when entering the US and European markets,” Sutjiadi said on Sunday as quoted by tempo.co.
He added that the investors' products had not entered the Indonesian market, so the products manufactured at the planned local factories would be only for exporting.
While Sutjiadi did not mention the amount of investment or identify the potential investors, he said that the baby stroller manufacturer wanted to commence operations at its Indonesian factory by the end of the year.
He said the baby strollers the company manufactured at its Chinese factories had a good market share in the US, exporting 60 to 70 containers per month and even up to 100 containers in certain months.
Meanwhile, the investor for the wooden toy manufacturer had yet to fond a suitable location for its factory.
Sutjiadi urged the government to facilitate the two Chinese investors, because other countries like Vietnam and Thailand were also competing for the factory relocation deal. (bbn)