EKONID took active part in the relocation of PT CDS Asia, also known as Alpan lighting, into Central Java from China. Alpan is one of the seven companies announced by President Joko Widodo to have relocated their operations to Indonesia during his work visit to Batang Industrial Park recently.
On June 30, it was announced that seven companies would relocate or expand their operations from China to Indonesia. These companies, hailing mainly from the United States, Japan, Taiwan and South Korea, would establish their operations in various locations in and around Batang Industrial Park, Central Java.
The announcement was made at the same time as President Joko Widodo鈥檚 work visit to Batang Industrial Park, during which he expressed his appreciation at the companies鈥� willingness to run their operations in Indonesia.
鈥淚 am happy that seven companies have entered [Indonesia]. Next is 17 potential investments worth US$37 billion dollars that we have to guard, pursue and serve. Increase our competitiveness. Do not allow a repeat of 2019 where not a single company relocated to Indonesia,鈥� said President Joko Widodo, referring to a 2019 World Bank report wherein out of 33 companies that relocated from China due to the US-China Trade War, none opted to move to Indonesia, choosing its regional peers Malaysia, Thailand or Vietnam instead.
Chairman of the Indonesia Investment Coordinating Board (BKPM) Mr. Bahlil Lahadalia said he had created a task force specifically to court more companies to relocate their operations from China to Indonesia, which has continued on amidst the ongoing trade war between the US and China. According to a recent survey released by US-based Gartner, a consultancy firm, as many as 33% of global supply chain leaders are considering moving their business out of China or are planning to by 2023.
鈥淭he process is highly intensive. We would directly knock on the 鈥榙oors鈥� of these companies one by one to convince them that Indonesia is the right place for their factories. The challenge is great. But it is on that point that BKPM must work creatively and responsively. We made some unusual approaches. And praise God, we are already seeing results in this early phase,鈥� said Mr. Lahadalia.
The seven companies that relocated are Alpan Lighting (PT CDS Asia) from the US, which manufactures solar powered lamps; Sagami Electric from Japan, which operates in the electronics sector; Denso from Japan, which operates in the motorized vehicles sector; Panasonic from Japan, which operates in the electronic sector; Meiloon from Taiwan, which operates specifically on audio and video products; Kenda Tire from Taiwan, which manufactures tires; and LG from South Korea, which operates in the electronics sector.
It should be noted that EKONID took an active part in assisting its client, US-based Alpan Lighting, in relocating its operations from China to Indonesia in regards to the establishment of the company and the acquisition of facilities that is suitable for the company鈥檚 new operations, as well as in the negotiations process with local stakeholders.
In regards to further investment into Indonesia, during the President鈥檚 work visit to Batang Industrial Park, it was also announced LG Chemicals from South Korea was planning a $9.8 billion investment towards a car battery plant in Indonesia. Furthermore, Mr. Lahadlia revealed that as many as 119 companies were mulling possible relocation to Indonesia, and that these companies hail mainly from China, Japan, Taiwan, Thailand, Malaysia, and South Korea.