JAKARTA (TheInsiderStories) - Japanese-based multinational company, Yamaha Corporation conveyed its business plan to the Indonesia government to construct a new musical instruments factory worth US$34 million (Rp568.54 billion) in Bekasi Regency, West Java, which will begin in May 2017.
The National Investment Coordinating Board (BKPM) data shows that the company used three-hour licensed and direct construction services program in industrial estate today. Yamaha will produce accoustic piano, digital piano, violin, and piano parts.
“About 99 percent of the production will be exported, which will help boost national export value by around US$84.7 million per year,” Himawan Hariyoga, Deputy Chairman for Investment Promotion BKPM, said on Thursday, (Mar 9).
He added the new plant is expected to create 1,600 new jobs. The construction of the new factory is expected to be completed in one year and launches its maiden export in September 2018.
Previously, Yamaha Corporation announced that the company decided to establish a manufacturing subsidiary in Indonesia, PT Yamaha Musical Products Asia (YMPA) and construct a new factory in Indonesia.
The construction of the new factory reflects Yamaha’s intention to respond to the rising demand for musical instruments and audio equipment as a consequence of expansion, primarily in the middle income classes, in the emerging countries. The new investment also aims to further expand its sales and market share in the target market.
Currently, the Yamaha has five manufacturing subsidiaries in Indonesia that are engaged in production of musical instruments and audio equipment. The construction of the new plant aims to raise production capacity, mainly in digital pianos.
The new subsidiary, YMPA, will be established in Bekasi which is located in the suburbs of Jakarta. There are many large industrial estates in the region, where a number of Japanese companies have set up manufacturing plants in the area.
Besides Indonesia, Yamaha also decided to build a new plant in India as a part of middle term global strategic investment by investing ¥50 billion for three year period that began in April 2016. (*)