Japanese investment in Indonesia soars in 2011

Japanese investment in Indonesia soars in 2011

According to a report, Japanese direct investment in Indonesia has spiked in recent months, with the cumulative total for the first nine months of this year amounting to 1.16 billion US dollars – the amount already surpasses the total 2010 investment by more than 60%.

The growth in Indonesia has no doubt been spurred by the tumultous activity elsewhere, as Japanese companies, hit first by the Tohoku earthquake and then by the flooding in Thailand, seek to establish manufacturing bases in Indonesia in a bid to rebuild their supply networks. Another factor is the raw potential of Indonesia as a consumer market, with a population exceeding 200 million.

The report adds that auto and consumer appliance sectors are leading the charge into the country. Japanese-affiliated automakers now control 90% of the local car market, where sales are expected to reach a million units within a few years. With that in mind, Toyota, Nissan and Daihatsu are stepping up investment in the country.

Parts makers are also jumping in, among them companies such as Nifco, a leading maker of plastic parts for automobiles. It’s building a factory in Indonesia to accommodate efforts by the automakers to increase local procurement ratios of finished cars.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Arrian on Oct 31, 2011 at 2:11 pm

    wonder why our country still not in their investment list? our fate or it has been spoilt by ….you know your self lah!!!!

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    • alfie60 on Oct 31, 2011 at 4:24 pm

      Right lah!!! They rather take their chances with the flood than come here because they dont know what the ‘catch’ here might be. Like the lifetime warranty on the power window,public later discover only for 10 years only some more for 10 years must sent the car to their overprice service center only. Sure later when we claim warranty got somemore catch like driver name claim must be in issurance policy meaning our wife or children or driver cannot claim. We must have 3 witness when it happen. Breakdown must happen on Plus highway only between 12noon and 3 oclock only any other location is invalid.. If got proof got children play with switch cannot claim cause not their fault ma!! Some more when if happen we cannot be travelling more than 80 kph(because the body cannot take the vibration) and must be using SIME tyres. We cannot change the CD player and speakers because is tampering with electrical wiring. Tinting of the glass windows on cars must be from their approve panel if not claim will be void(tampering with the door panel ma..) To claim warranty must produce petrol receipt showing we are only using the approve fuel supplier PETRONAS and other fuel brand makes the claim null and void!!!!!

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    • MoFaz on Oct 31, 2011 at 4:33 pm

      Think rationally.. the best countries in Asean is Singapore, but why the Japanese doesn’t invest in Singapore? so, what are they looking for?
      Our Gov raised import tariffs drastically in 1967 to encourage the Japanese to assemble their cars here. too bad the market size is too small at that time. economies of scale could not be actualized with around 15 assembly plants serving the small domestic market.
      and too bad also that Thailand banned import cars in 1978, which forced the Japanese to assemble cars in Thai and leave only few models to be assembled in Malaysia. Malaysia has high import tariff but Thailand banned the import cars. If they make the cars in Malaysia, they can’t import it to Thai, but if they make their cars in Thai, they can still sell it in Malaysia. Plus, Thailand has much cheaper workforce, even cheaper than China. Honda factory workers in China get RM1200, but only RM700 in Thailand .
      That’s just Malaysia vs. Thailand which has twice our population. if we put Indonesia into the picture, surely Malaysia has no chance against more than 200mil population which provide much cheaper workforce and much bigger domestic market.
      Faced with this situation, the government decided to embark upon a programme of establishing and supporting a national car manufacturer. That’s why Proton was established.

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      • alfie60 on Oct 31, 2011 at 5:03 pm

        Am thinking rationally…i thought it would be Malaysia because the best car manufacturer in the world is here…..Proton!!!!

        How unpatriotic when you mention Singapore as the best country in Asia!! You must a Singapore agent based in Malaysia.

        Foreign agent!!!! Incidently how does DSZ bathwater taste like maybe you can enlighten us.

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        • MoFaz on Oct 31, 2011 at 6:13 pm

          dude, I said Asean, not Asian. do you know the difference?
          in term of business, Singapore is no 1 in Asean, they’re even ranked no 1 in the world by The World Bank in “Ease of Doing Business”.
          that’s your usual clueless way.. if I said something good about Proton, you’d say I’m Proton agent.. if I said something good about Singapore,.. you’d say I’m Singapore agent.. you just can’t disagree or discuss intelligently.

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          • alfie60 on Oct 31, 2011 at 9:41 pm

            All Singapore Expat in Malaysia always say ‘in term of business,Singapore is no 1 in Asean..

            I think singaporean people like you like to see malaysian people suffer and what better way than to make us buy and drive a shitty problematic Proton car and laugh behind our back.

            Cakap betul betul… you singaporean kah??? Kiasu!!!

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          • Unforgiven on Oct 31, 2011 at 10:40 pm

            He is either non M’sian or one of the beneficial/cronies.
            Since he would only like to see M’sia getting worst.

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          • MoFaz on Oct 31, 2011 at 11:00 pm

            what kind of argument is this? no wonder outsiders think Malaysia is not serious doing anything, because of people like you are just clueless and stupidly saying things without thinking. last but not least, simply labelling or accusing people. I won’t expect anything better from you and your shitty comments.

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      • STFU! on Oct 31, 2011 at 6:27 pm

        got any source about what you said Thailand banned imported vehicle?

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        • MoFaz on Oct 31, 2011 at 6:49 pm

          i read about it in a magazine which i couldn’t remember, few year back. but if you know internet, you should know google. try search “thai ban cbu import car” and you’ll find some articles about it.
          here is 1 of them, check page 26 for easy-to-understand chronology of Thai automotive history:
          http://www.intracen.org/uploadedFiles/intracenorg/Content/Trade_Support_Institutions/Business_voice_in_policy_making/WTO_accession_implication_for_business/Thailand_in_global_automobile_networks.pdf

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      • BeemerFreak on Oct 31, 2011 at 7:34 pm

        Eventhough Singapore dont make cars, why are they still the largest Oil Rig manufacturer on earth? Because they are smart enough not to compete with other giants around, instead just concentrating on something that others cant really do. So please, Proton was set up to waste the people’s money and not solution towards car companies moving to Thailand. Face it our G was not wise enough and not forward thinking enough… vision is lacking and this problem is continuing

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        • Unforgiven on Oct 31, 2011 at 8:27 pm

          If MoFaz unable to understand, do you think those in G will understand?

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        • MoFaz on Oct 31, 2011 at 11:55 pm

          Proton is NOT established to compete with the giants. the early stage of the industrialization era is to substitute imports. which means Malaysia is just trying to reduce import dependencies and to be self-sufficient as much as we could. Malaysia used to export raw materials like rubber and palm oil, but had to import finished products like tyres and gloves. now we have the largest rubber glove manufacturer in the world.
          it might costs hundreds of millions to buy oil-rig, but do you buy it everyday, every year? Petronas will only build oil rig if the oil field would give high ROI. it’s totally different if we talk about cars. 600,000 cars sold in Malaysia last year, if we take RM30k as cheapest imports, that would be at minimum RM18bil flowing out of the country, EVERY YEAR! now, what kind of returns you get by spending that much money importing cars? by having P1 and P2, the outflow could be reduced greatly.

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          • alfie60 on Nov 01, 2011 at 12:17 am

            Typical kiasu SGP Expat! Got good lubang to make money dont want other people to do the same. Make good money in oil rig business but tell Malaysian to make shitty car that nobody want to buy is good business for us. Sure sound like singaporean person to me trying to sabotage our economy.

            No normal warmblooded malaysia even admit singapore is better than us unless they are……….a singaporean living in Msia.

            Malaysia Best!!! Can make car but Singapore cannot!!!!

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          • MoFaz on Nov 01, 2011 at 9:56 am

            you have a shitty brain inside your skull… or maybe no brain at all. just shit.

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          • im laughing with all comment above either funny or plain stupid..i dont want to comment anything..i will become singpr expat later..huhu

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    • yh Inc. on Oct 31, 2011 at 7:19 pm

      If I were car maker, definitely I’m not coming Malaysia. Indonesia is having 1000000X of business potential than here as they are fast-developing country and the market saturation (in terms of car) is relatively low. The income of the people is picking up and the ability of owning a car is getting higher. What we have here? A high and big hurdle for them to make money here, which is our national car.

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      • Sunny on Oct 31, 2011 at 11:34 pm

        If if I were investor I wont invest in Indonesia..firstly natural disasters always occur so for long term running is a bad idea, secondly safety is not proficient especially if you are westerner there are terrorist camps around Indonesia that obviously targeting westerner…so the best places is either Singapore, Malaysia, or Thailand(far from flooded area) if we excluded government policies.

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        • jiban on Jan 19, 2012 at 1:07 am

          that’s why you’re unemployed, simply because you’re so stupid.

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  • seperlinky on Oct 31, 2011 at 2:49 pm

    Thanks to Government our policy, investors are investing elsewhere ;)

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  • they could have come here. if only our Govt was smart and forward-thinking then (and now)….. haih~

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  • Sunny on Oct 31, 2011 at 3:39 pm

    No wonder Toyota quality dropping for few years back, now I get the answer.

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  • pathfinder on Oct 31, 2011 at 4:05 pm

    and….we are we in the middle of this thing? wait…. right…. yeah…needless to say….

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  • squawk on Oct 31, 2011 at 4:36 pm

    Applause…….

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  • tikus on Oct 31, 2011 at 5:58 pm

    Miti pls do something about it FAST !!

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  • Ahmed on Oct 31, 2011 at 7:09 pm

    Bunch of idiots here without brain. Open up your palms and count your fingers. Your need to know how to count . Invest in Malaysia vs Indonesia? You need to improve your geography subject to differentiate the population btwn these countries …… That why I don’t understand why most of you never know how to think and thought that Toyota will invest in your country ….. Sad n lame.

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    • squawk on Oct 31, 2011 at 9:11 pm

      It’s not always about the numbers. Singapore got Bosch and Continental (other than tires) to set up R&D centers not just for regional work but global, that work with their universities.

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    • Sunny on Oct 31, 2011 at 11:40 pm

      Ahmed obviously you are indon either you had stayed in Malaysia quite some times pretend to be Malaysian…Indon got nothing to offer in term of stability of peace and safety, the issue is not population..for what got 100million population but brainless like you.

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  • Are they not afraid that there would be earthquakes in Indonesia or tsunami?

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  • now we all know mofaz is from kiasu…fact! very sad day for us malaysian… :(
    anyway..where expatriate vn? senyap je…

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    • Unforgiven on Nov 01, 2011 at 9:39 am

      Why? Because his mind set is same as the G? Or he would like Brit/France/Sing/Jp/etc to laugh at us and the policies?

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  • tec96248 on Nov 01, 2011 at 4:30 pm

    haha, what a pity. most of the comments are emotional and short sighted. Investors or businessmen doing business to make money, long term or short term, they will make profit or have their returns in the shortest period. “Everything” does count to make your returns and profits in the shortest period and long term investment. e.g. why invest the same amount to make 1 billion dollar in 20 years when you can do it in 5 years?
    hahaha………..depends on how far you can see……

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  • samsam on Nov 02, 2011 at 1:06 pm

    dont worry ONE DAY they will invest in our country =]

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  • Stephen on Nov 03, 2011 at 5:15 pm

    many comment show stuff we know.
    lets think about it another way.

    For the Japs to come here to invest.,….they need engineers and operators.
    You might have 50 engineers working with 1000 operators working in one plant.

    if you ends up having 1000 indonesian operator which you need to provide meal/ housing etc to get them work at Malaysia and have 50engineer (mostly junior engineer since Japanese always like to put senior exec to make final decision)

    it just look logic to move the investment at indonesia…if Indonesia engineer cannot fit the need, just go to Malaysia and get some over since Malaysia is one of the famous country to export talent now.

    don’t think it is crazy. I believe more and more Engineer is going to Thailand and indonesia beside USA / China and Europe.

    one day Malaysia is only relevant as a country who provide cheap and good (maybe acceptable) quality engineer/ talent.

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    • bro.. i think Malaysia will not only export professionals…eventually, malaysia will be supplying maids to indonesia, vietnam and who knows where else..
      agree???

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