Japan' manufacturer Mitsubishi Chemical Holdings Corp. plans to invest Rp2.1 trillion (US$150 million) in Cilegon, Banten - Photo by BKPM Office

JAKARTA (TheInsiderStories) — Japan’ manufacturer Mitsubishi Chemical Holdings Corp. plans to invest Rp2.1 trillion (US$150 million) in Cilegon, Banten. The commitment delivered by the company’ CEO Hitoshi Ochi when meeting with head of Investment Coordinating Board, Bahlil Lahadalia in Davos, Switzerland, on Tuesday (01/21).

At the meeting, said the chairman, the Japanese company needs tax incentives to run the project. He promised to guard the new investment until it becomes in Indonesia.

Last year, Mitsubishi Chemical has announced that its wholly-owned subsidiary, PT MC PET Film Indonesia to build a new facility to increase its polyester film production capacity. The new facility is slated for completion at the end of 2021.

Mitsubishi Chemical has manufactured polyester films for optical, industrial, and packaging applications at five production facilities in Japan, China, Indonesia, the United States, and Germany, the company said.

Based on official data, demand for industry-use polyester films is currently on the rise, especially in Europe, and the company is planning to increase its production capacity. In other regions, it will also take a proactive approach in business development, as a leading polyester film company, by increasing its production capacity to meet the needs one by one application.

According to government data, Japan is the second-largest investor country in Indonesia with a total investment realization of $23.3 billion. Japanese investment is dominated by the transportation and other transportation equipment sector (28 percent), electricity, gas, and water (22 percent), then housing, industrial estates, and offices (10 percent), and machinery, electronics, health equipment, optics (7 percent).

In the second quarter of 2019, the realization of Japanese investment reached $1.22 billion, $1.13 billion in the first quarter, and $4.95 billion in 2018. The largest area is in Java (94 percent) and Sumatra (5 percent).

Mitsubish Chemical is Japan’s largest chemical company, established in 2005. Mitsubishi Chemical expects business lines, namely automotive and aerospace, IT (electronics and displays), health (food and bio product), environment or energy, packaging, labels and films.

US$1: Rp14,000

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