Workers assemble parts of a Daihatsu car in an Astra Daihatsu Motor factory in Karawang, West Java (Photo: Antara) Jakarta (VNA) - Japanese companies operating in Indonesia will stick to their future investment plans, despite declines in sales and production due to the COVID-19 pandemic, a survey conducted by the Japan External Trade Organization (JETRO) has shown.
The survey, which illustrates the impact the pandemic has had on more than 350 Japan-based companies operating in Indonesia, showed that due to the pandemic, 80 percent of the companies have seen a decrease in sales, with 37 percent stating their sales had fallen to half their normal levels in this year’s second quarter.
Despite plunging sales and production rates, 69 percent of respondents remained confident about their future investment strategies in Indonesia. Only 15 percent intended to slash their future investments amid the current economic woes.
“Many Japanese companies still see Indonesia as a potential market. While it’s true that demand is decreasing in the short term, consumption will return in the long run,” JETRO senior director Wataru Ueno told reporters during an online briefing on July 7.
Japan was the fourth largest contributor of foreign investment to Indonesia in the first quarter of the year, investing 604.2 million USD. Last year, it invested a total of 4.3 billion USD, making it the third-largest foreign investor overall, just behind China and Singapore, Investment Coordinating Board (BKPM) data showed./.
VNA
