Posted on 26 Oct 2011
It’s reported that Indonesia will soon become the next destination for investment in auto parts manufacture as negotiations are underway.
Industry Minister M.S. Hidayat said that the investment in car components and sub-components would come in part by relocating auto part production centers that were experiencing production slowdown, including in Japan and Thailand.
Auto parts supply has reportedly suffered a disruption by the worst flooding in decades in Thailand, where the leading Japanese carmakers deploy their regional production base in Southeast Asia, as manufacturers halt operation.
He added that the talks of planned relocation had begun. Some companies in the electronics and automotive component sectors from Japan are showing interest in entering Indonesia.
Mr. Budi Darmadi, the Industry Ministry Director General of high tech priority industries indicated that apart from relocation, Indonesia was currently the key destination for investment in auto component and subcomponent facilities by looking at the recent robust expansion of car production.
