REPUBLIKA.CO.ID, JAKARTA -- Shanghai delegation of China Council for the Promotion of International Trade (CCPIT) is seeking to explore the potential of the Indonesian manufacturing sector, in cooperation with the Chinese industry.
To that end, Indonesian Industry Minister Airlangga Hartarto has conveyed the advantages of the national manufacturing industry to the delegation.
"They (the Chinese delegation) have reported that some industries in China will move from the manufacturing to the service sector. Moreover, the labor costs in China are already high enough. Therefore, the Chinese representatives stated that there is a possibility that some Chinese industry players would move to Indonesia," Hartarto stated in a press release received in Jakarta on Monday.
The delegation planned to hold an import exhibition in Shanghai, China, in 2018.
He stated that Indonesia has set up a special industrial area to accommodate the Chinese industries. The area will be located in Karawang, West Java province, with a land area of about 200 hectares.
He stated that the area will support several industrial sectors, such as automotive, electronics, shoes, textiles, clothing, and petrochemicals.
He added that China's investment, especially in the automotive sector, is growing rapidly.
There were two Chinese vehicle factories in Indonesia that have been operating with an investment of Rp16 trillion and have been able to show good sale results.
"Besides having a very large domestic market, Indonesia can be a potential production and export base too. In fact, the industrial value chain of Indonesia already exists," he remarked.
Based on the records of Indonesia's Investment Coordinating Board (BKPM), China's total investment to Indonesia ranked the second largest last year, with a value of US$1.07 billion. The money has flowed into Indonesia through 520 projects.
Hartarto has also offered other industrial areas in Indonesia, including in Tanah Kuning, North Kalimantan province. The area, with an area of 10 thousand hectares, will be used as an aluminum-based industry center.
Hydroelectric Power Plant and new Renewable Energy sources will also be constructed in Tanah Kuning, an industrial area with an international port as the main capital for Indonesia to attract investors.
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