British' aircraft tire maker, Dunlop Aircraft Tires, plans to build a new and retread aircraft tire factory in Karawang, West Java with a value of Rp1 trillion (US$70.92 million) - Photo by Industry Ministry Office

JAKARTA (TheInsiderStories) – British’ airplane tire maker, Dunlop Aircraft Tires, plans to build a factory in Karawang, West Java with total investment of Rp1 trillion (US$70.92 million), said the minister on Thursday (08/11).  Currently, most of domestic airlines use vulcanized from China, Hong Kong and Thailand.

The manufacturer will partnering with local firm PT Rubberman Indonesia to build the new plant. The retreading tire factory is projected to be operational within the next 18 months.

“After that, they built a facility to produce aircraft tire,” said industry minister, Agus Gumiwang Kartasasmita, in an official statement.

Dunlop is one of the global aircraft tire manufacturers. The company have factories in China to serve their customers in the Asia Pacific region. Meanwhile, Rubberman is a retread tire industry with more than 25 factories, located in Java, Sumatra, Kalimantan and Sulawesi.

Kartasasmita explained, the investment plan was a good signal for Indonesia amid the global economic downturn. In addition, this indicated that Indonesia is still one of the main investment destinations for world-class companies.

“We hope that this investment can attract companies from Singapore and Malaysia to retread tires in Indonesia,” he conveyed.

The minister asserted, investment in the tire factory has the potential to spur economic growth in the industrial sector and national economy. This is in line with the growth in the air transportation sector which has  increased with the construction of several airports throughout Indonesia.

He noted, the aircraft industry has consistently grown by 6 percent over the past 20 years and the potential quite huge. In addition, said Kartasasmita, the existence of these facilities will affect the efficiency of maintenance costs used by Indonesian airlines.

Dunlop’ CEO Gordon Roper, added, he was interested in investing in Indonesia because it was supported by an abundance of rubber raw materials. He also viewed the aviation industry in Indonesia growing.

He optimistic that their production capacity in Indonesia will meet the domestic market needs. He also expect, the capacity to meet the needs of global consumers.

Director general at the ministry, Muhammad Khayam, revealed that the Dunlop investment plan would provide benefits for Indonesia, especially to absorb local rubber products. And, its possible to export the aircraft tire on the coast of East Asia region.

Written by Staff Editor, Email: theinsiderstories@gmail.com