JAKARTA (TheInsiderStories) – Japan’ Mitsubishi Chemical Corporation (MCC) has announced that its wholly-owned subsidiary, PT MC PET Film Indonesia (MFI) will build a new facility to increase its polyester film production capacity. MFI will invest about US$130 million in the new facility, which is slated for completion at the end of 2021. Indonesian Investment Coordinating Board is ready to facilitate the firm investment expansion.
The chairman Thomas Lembong stated that various efforts to increase capital investment and also services to investors continued. That’s a real work carried out by all levels of the agency in carrying out the vision of Indonesian President Joko Widodo to better serve both foreign and domestic investors.
“The government has made is in terms of service and convenience for investors. Today, service and convenience for investors are very important factors for them to decide to invest. We always welcome the incoming investments and we facilitate their best needs,” Lembong said in an official statement to the media in Jakarta, today (09/16).
The board sectoral promotion director Imam Soejoedi adds the government’s efforts to issue tax holiday investment incentives in 2018 make many companies take into account the large scale investment in Indonesia. The company consists of loyal investors who want to expand and also new investors.
Besides MCC, he went on, there are at least eight companies that are in the serious stage of considering their business in Indonesia. Among them in the automotive sector, basic chemistry, food and beverage, electricity generation, and other services.
In the polyester film market, MCC anticipates continued growth in the optical application for displays, conventionally its main application. In addition, demand for polyester films, particularly those for processes to manufacture electronic components, is showing remarkable growth.
“Factors behind this favorable market include expanding the use of electronic components in the automotive industry and increasing production of electronic components such as multilayer ceramic capacitors spurred by the growing number of 5G compatible base stations and ongoing upgrades in telecommunications equipment,” MFI’ president director Bambang Sastrosatomo stated.
Under these circumstances, MFI has worked to meet rising market demand by enhancing the efficiency of its current plant and other measures, but in consideration of projected demand growth, it decided to build a new facility that will increase its production capacity to scale of 25,000 tons per annum, which means it will increase its production capacity more than twice fold to 45,0000 tons, it said.
MCC 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.
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); 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).
Written by Lexy Nantu, Email: email@example.com