REPUBLIKA.CO.ID, JAKARTA -- Recent labor actions in Indonesia did not discourage Japanese companies from continuing to invest in the country.

"Our company is not bothered by labor wage disputes in Indonesia because all Asian countries are now imposing a high labor wage," general manager of Lotte, Makoto Tokiwa, said at the inauguration of a new Lotte plant in Cikarang, Bekasi, West Java, on Tuesday.

For Japanese investors, he said, Indonesia remains a large market, especially for food products, and until last year Indonesia remained a potential market in Southeast Asia for food products.

Makoto Tokiwa said because of its market, Indonesia has also been chosen as the location of his company's second production plant in Asia, besides Vietnam, because Indonesian workers' levels of productivity is categorized as good.

Also, the Indonesian market remains alluring for foreign investors, as Lotte Indonesia head of marketing Agus said.

He noted that the market potential for snacks in Indonesia has reached Rp400 billion.

In view of this, many fear the possibility of foreign investors fleeing the market due to recent labor strikes was unreasonable, he said.

"We are not worried, because the Indonesian market is huge," Makoto Tokiwa said.

Lotte has invested US47 million to build the Indonesia Lotte Choco Pie factory, with a production capacity of up to 30 tons of snacks and biscuits per day.

"We have invested around US$47 million," Lotte Indonesia president director Seishi Murosato said at the inauguration ceremony.

The factory is the second plant Lotte has opened in Southeast Asia, after building one in Vietnam.

The factory is set to use raw materials from Indonesia, while its products are also to be exported to the Asian region.

Lotte has been present in Indonesia as a trading company since 1993 and began production in 1994.

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