automotive

Minister Of Industry Encourages Turkish Companies To Increase Manufacturing Investment In The Country

Indonesia's investment opportunities, with various advantages and facilities offered, have attracted the attention of various Turkish industrial companies. During a visit to Ankara and Istanbul on June 4-5, 2024, Minister of Industry Agus Gumiwang Kartasasmita held a meeting with several Turkish industrial company leaders who have invested in Indonesia, ranging from companies in the tire, textile, electronics, to seafood processing industries.

Turkey's total investment in Indonesia from 2019 to 2023 reached USD 42.758 million, placing Turkey at 43rd among the countries investing in Indonesia.

"We see this situation as a great opportunity for Turkish companies to expand their business in Indonesia. Therefore, during the visit, we encouraged Turkish companies to expand their business," said the Minister of Industry in Jakarta on Friday (7/6).

During the occasion, the Minister of Industry held a meeting with the President of Consumer Durables Arcelik, Fatih Kemal Ebiclioglu. Arcelik is a Turkish household appliance company that is the second largest in the world.

In Indonesia, the company partners with Hitachi to produce washing machines in a factory located in Karawang, West Java. Arcelik also plans to expand its production capacity in Indonesia by establishing a new factory for air conditioners and refrigerators in Semarang.

Meanwhile, Koc Holding, the parent company of Arcelik, has made acquisitions and joint ventures with various partners, including Hitachi for the Asia Pacific market, to enhance its business. "We invite Arcelik to explore new cooperation opportunities with Indonesian electronics companies such as Polytron," said the Minister of Industry.

During the meeting with CEO Kordsa, Mr. ?brahim Ozgur Y?ld?r?m, the Minister of Industry discussed cooperation opportunities in the tire and textile industries, considering Kordsa's investment in Indonesia.

Kordsa currently has a factory facility in Bogor, Indonesia to produce nylon, yarn, and other processed rubber products for export-oriented purposes.

Kordsa states that in the North American market, the company faces competition from China and Vietnam. In relation to this, the Minister of Industry conveyed that the Indonesian Government provides incentives in the form of a super tax deduction of up to 300%, and Indokordsa (Kordsa's company in Indonesia) can apply for this. As for other incentives, they will be further discussed.

"The industrial policy in Indonesia focuses on increasing added value and integrating the Indonesian industrial sector into the global supply chain. This is also aimed at protecting foreign investment in Indonesia, especially in the manufacturing sector," explained the Minister of Industry.

The government welcomes Kordsa's interest in developing products other than those already produced in Indonesia. Some of the products that can be developed include composite concentrate, airbags for vehicles, and composite fibers for strengthening building structures.

"We support this plan, and further technical discussions will be held in the next meeting," concluded the Minister of Industry.