Japanese Baby Diapers Firm to Make Indonesia Production Base

Jakarta (Antara Bali) -- A Japanese company that manufactures baby diapers will invest US$8.1 million to expand its business to Indonesia and make the country a production base, according to the Capital Investment Coordinating Board (BKPM).

Chief of the BKPM Franky Sibarani said in a press statement on Friday that with the Japanese company expanding its business and making Indonesia its production base, Indonesia will save US$9.3 million on imports of the product per annum.

"This indicates that this is a good investment for Indonesia, one that can encourage exports while saving on foreign exchange by importing substitute products," he explained.

Sibarani added that the Japanese baby diapers company had been marketing its products in Thailand and planned to commence production in Indonesia in the first quarter of 2016. With this move, Indonesia will no longer need to import diapers from Thailand.

Moreover, the company is now in the process of completing the construction of its factory in West Java and is planning to invest Rp101 billion in the next phase of its business expansion in Indonesia.

According to Deputy Chief for Investment Control and Implementation of the BKMP Azhar Lubis, his office will continue to monitor developments in the company's investment.

He affirmed that they will facilitate the needs of the investor with regard to their master list and required business permits.

"This project is vital for Indonesia as it constitutes export-oriented import substitutes and large employment absorption," Lubis pointed out.

According to data from the BKPM, Japanese investment realization in the first semester of 2012 amounted to US$13.68 billion, which made the country the second-largest investor after Singapore.

In the past five years, about 53 percent of Japanese investment was realized in the transportation equipment industry; 17 percent in the metal, machinery and electronics industries; 7 percent in the chemical and pharmaceutical industry; and 4 percent each in the food and textile industries.

In addition, Japanese investment realization in the first semester of 2015 stood at Rp19.72 trillion, up from Rp16.19 trillion in the same period last year. (WDY)