Around 20 Japanese companies are planning to invest in Indonesia, mostly in the food and beverage industry, with initial cash injections ranging from 10 million USD to 100 million USD, said an official from the Indonesian Industry Ministry.
Director General for agriculture and chemical industries, Panggah Susanto, said many of the Japanese companies will invest in Java, which together with Sumatra is a leading industrial area of Indonesia . They will rely on local materials for their production.
Foreign investors have regained their trust in Indonesia’s economic prospects while its attraction as a potential investment destination is rising with the Government pledging to offer several incentives, including tax allowances.
Indonesian Food and Beverages Association chairman Adhi Lukman said Japanese firms are trying to expand their business to Indonesia because their Government has encouraged them to invest outside Japan .
At the same time, Japan’s market is stagnant while its sales tax has been increased to 8 percent from 5 percent previously, he added.
Director General for agriculture and chemical industries, Panggah Susanto, said many of the Japanese companies will invest in Java, which together with Sumatra is a leading industrial area of Indonesia . They will rely on local materials for their production.
Foreign investors have regained their trust in Indonesia’s economic prospects while its attraction as a potential investment destination is rising with the Government pledging to offer several incentives, including tax allowances.
Indonesian Food and Beverages Association chairman Adhi Lukman said Japanese firms are trying to expand their business to Indonesia because their Government has encouraged them to invest outside Japan .
At the same time, Japan’s market is stagnant while its sales tax has been increased to 8 percent from 5 percent previously, he added.
