The plan was confirmed following a visit to South Korea by Investment Coordinating Board (BKPM) head Bahlil Lahadalia and State-Owned Enterprises Minister Erick Thohir on Wednesday and Thursday.

“One more company is going to relocate from China to Indonesia. It’s a labor-intensive industry, it could add up to 4,000 new jobs. Hopefully, it will help the economy during this COVID-19 crisis,” Bahlil said in a written statement on Saturday, adding that Sejin would also increase foreign exchange as it exported its products.

Sejin plans to relocate its factory from Dalian city in China to Pati regency in Central Java. The company’s total investment value is estimated at US$35 million.

President Joko “Jokowi” Widodo announced in June that seven foreign companies had confirmed plans to relocate production facilities to Indonesia, mostly from China. The relocation plans indicate foreign investors are still attracted to Indonesia despite the global economic downturn during the pandemic. The relocation plans are predicted to bring $850 million in investment to the country and create employment for 30,000 workers.

The footwear maker joins other foreign companies that have decided to move their manufacturing activities Indonesia.   

Japanese electronics giant Panasonic relocated its facilities to Indonesia to make Southeast Asia’s biggest economy its export base for home appliances, while LG Electronics moved its facilities from South Korea with the goal of making Indonesia its regional hub as its seeks to expand its market in Asia and Australia.

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