JAKARTA (TheInsiderStories) - Taiwanese company, Meiloon Group relocated its electronic factory from Suzhou, China to Subang in West Java. The new project managed by PT Meiloon Technology Indonesia (MTI) need costs US$90 millon and its expecting to be completed in November 2020.
The groundbreaking of the plant attended by head of the Investment Coordinating Board, Bahlil Lahadalia, along with West Java Governor Ridwan Kamil and Subang Major Ruhiyat. The Group CEO and CFO of Meiloon Group, Eva Kuo said, the new factory will begin the production before the end of second semester of 2020.
In his remarks, Kamil asserted that West Java is open its doors as wide as possible for investment while maintaining the health protocol. He said, this Subang area also known as Rebana areas is a gold zone in the future, with infrastructure readiness and accessibility.
Beside Meiloon, six other companies that have relocated their factories to Indonesia are PT Sagami Indonesia from Japan, PT CDS Asia (Alpan Lighting) from United States, PT Kenda Rubber Indonesia from Taiwan, PT Denso Indonesia from Japan, PT Panasonic Manufacturing Indonesia from Japan, and PT LG Electronics Indonesia from South Korea.
The investment plan of the companies is estimated to reach $850 million and will absorb 30,000 workers with investment destinations in Central Java, West Java, Banten, Jakarta and North Sumatra.
In addition to them, there are 17 other investors who have expressed their interest in relocating or diversifying their industries to Indonesia. One of them is an investor from South Korea, LG Chemicals, who expressed its commitment to build an integrated vehicle battery industry with a smelter in the country. The investment planned is estimated worth of $9.8 billion and to absorbs around 14,000 workers.
Beside Subang, Indonesian government also prepares Batang Industrial Zones, Brebes Industrial Park to relocates Japan and US plant from China as an effort to boost the development of Central Java and spur national economic growth. The trade tension between the two largest economy, he acknowledge become an opportunity for the country.
The industrial zones part of National Priority Projects in 2020. As known, President Joko Widodo has approved 89 infrastructure projects to build in this year. Beside build in Java Island, the government plans to build 19 priority industry areas outside Java from 2020 until 2024.
The government intends to grow industrial zones outside Java since 2015 by developed 14 priority areas. Until 2019, the government has built 24 industry areas in the Sumatra, Kalimantan and other islands excluded Java. The government also will adds 19 industrial zones in nine areas.
Sei Mangkei and Kuala Tanjung in North Sumatra, Galang Batang and Bintan Aerospace Industry in Riau, Kemingking in Jambi, Tanjung Enim South Sumatra, Pesawaran and Way Pisang in Lampung, also Sadai in Bangka Belitung. Then, the ruler will establish six areas in Kalimantan, which are Ketapang in West Kalimantan, Surya Borneo in Central Kalimantan, Buluminung in East Kalimantan, Tanah Kuning in North Kalimantan, also Batulicin and Jorong in South Kalimantan.
The rest are Bangkalan in Madura, Weda Bay in North Maluku, Palu in Central Sulawesi, and Teluk Bintuni in West Papua Barat. The industrial areas focused on agro industry, oil and gas, metal and coal, also high technology industry and aerospace. The industry area planning has been through examination from various aspects.
While, areas in Java will be focused on high technology, labor-intensive and industry with water low consumption and outside Java tend to be natural resources industry, logistic efficiency system industry, and center of new economic development. To date, there are 103 areas that have operated with 55,000 hectares areas. The areas are located in Java of 58 areas, Sumatra of 33 areas, and the other areas.
Besides, there are 15 industry areas under construction and 10 areas in the planning stage. The activity in industrial areas has generated a multiplier effect on the national economy, ranging from the added value increasing, local human resources absorbing, and foreign exchange earnings.
Meiloon is a speaker manufacturer from Taiwan. The new factory its expecting will absorb approximately 8,000 workers in Indonesia. 100 percent of the production will be exported. The manufacturer has been established since 1973 and listed on the Taiwan Stock Exchange since 2001.
Written by Staff Editor, Email: theinsiderstories@gmail.com
