Indonesia works to attract firms relocating from China hinh anh 1BKPM Chairman Thomas Lembong

Jakarta (VNA) – The Indonesian government, through the Investment Coordinating Board (BKPM) and the Ministry of Industry, is working to attract companies relocating their operation from China due to trade tension with the US, according to BKPM Chairman Thomas Lembong.

One of Apple’s main suppliers, Pegatron, has successfully shifted its factory to Batam by investing 40 million USD, and will generate export potential of up to 1 billion USD annually.

The Ministry of Industry is communicating with another supplier of Apple, Compel, to relocate to Indonesia. Foxconn and Wistron are the two main suppliers of Apple, who choose to go to India, the Indonesian news agency, Antara quoted the BKPM Chairman as saying.

Indeed, Indonesia will have to face fierce competition to be able to work on factory relocation from China, he said.

Lembong laid stress on the current need to relocate industries outside China amid China’s economic structure no longer being conducive to labour-intensive industries.

It’s time for China to relocate factories that were taken from Southeast Asian countries 20 years ago, he said, adding the number of workers in China has begun to decrease and China's economic structure is no longer conducive to labour-intensive industries. -VNA