Senior representatives from several Taiwanese companies are currently in Indonesia to explore investment opportunities in the country’s growing industrial sector, especially the electronics and petrochemical industries.

The delegation, led by Sheng Chung Lin of Taiwanese petrochemical firm CPC Corporation, comprises executives of the country’s major companies, namely trading house Lih Hsin Industrial & Trading Co., textile company Gallant Industries, machinery specialists King Sun In-dustry Co., Kenmee Mechanical Engineering Co. and electronics firm Shinfox Co.

During a meeting with Deputy Industry Minister Alex Retraubun, the delegation expressed interest in doing business in Indonesia, especially in such sectors as electronics, petrochemicals and solar power generation.

“They are interested in investing in a number of sectors, especially in the solar power, electronics and petrochemicals industries,” Alex told reporters after a meeting with the delegation at his office on Tuesday.

Alex said the delegation had also expressed interest in building an industrial complex, specifically dedicated to electronics.

Alex suggested that any plans to build such a complex for electronics production should be located in Cirebon, West Java. Tthink we want to focus these industrial estates in West Java. The electronics industry is high tech, so it’s impossible [to build] outside of Java,” Alex explained.

Furthermore, he also revealed that there were talks of an investment opportunity in the solar energy sector.

Alex is optimistic that at least one of the companies will start investing in the country this year. However, he said that the delegation did not reveal the total investment value planned.

“There has been no number dropping at all. It’s up to them when they want to invest, so they’ll come if they’re interested. But I’m optimistic that they’ll come back this year,” he said.

“It’s a work in progress; they didn’t come today to invest tomorrow. They wanted to learn of the perks of investing [in the country] and the Industry Ministry has offered them a tax holiday and tax allowance.”

Setio Hartono, the ministry’s secretary director general for manufacture based industries, said that the delegates that came represented goods brands that wanted to expand 1 their markets. “They came knowing which industries to develop in Indonesia, from petrochemicals to leather bags,” he told reporters on Tuesday.

Setio also mentioned that Taiwan was known for its strengths in the technology industry and small and medium enterprises (SMEs), a fact that the government could benefit from. He said that the Indonesian SME sector could upscale its production capacity through strategic partnerships with Taiwan.

“It would be fantastic if the small and medium industry sector could cooperate with Taiwan. They are strong in small and midscale industries,” he said.

Setio added that small and medium businesses (SMBs) were sure to benefit from future joint ventures with Taiwanese firms, citing improvements in technology transfers.

Source : Jakarta Post