Ref:  Apakah NKRI adalah surga untuk investor asing? Siapa saja di antara 
kalangan kaum berkuasa dan elit mendapat oleh-oleh?

http://www.thejakartapost.com/news/2012/10/15/indonesia-promising-land-taiwan.html

Indonesia promising land for Taiwan
Linda Yulisman, The Jakarta Post, Jakarta | Headlines | Mon, October 15 2012, 
11:04 AM 

Paper Edition | Page: 3

The continuing turbulence in the world economy does not seem to worry Ko Chao 
Chih, a Taiwanese investor. An owner of a textile and garment factory in 
Cimahi, West Java, Ko has long shifted his business focus from exports to the 
United States and European countries to domestic sales as demand here continues 
to rise significantly.

“Before 1998, the overseas market was better, with our firm exporting 80 
percent of output while allocating 20 percent for the local market. But now, 60 
percent of the output is sold in Indonesia and only 40 percent goes for 
export,” said Ko, whose factory produces spandex and materials to make cloth 
and sports shoes mostly for local manufacturers, and garments for export.

Being upbeat about Indonesia’s robust economic growth, the 68-year-old 
businessman said that the firm would maintain its presence in the country 
despite a key problem — surging labor costs.

“Indonesia has a huge market, which still has enormous room to further expand. 
Meanwhile, the workforce is also more abundant compared to other countries in 
the region like Vietnam or Thailand,” said Ko, who employs about 800 workers at 
his factory.

According to Andrew Hsia, the representative of the Taipei Economic and Trade 
Office for Indonesia, a sizeable amount of investment from Taiwanese firms will 
soon enter Indonesia, not only in the sectors where investment is already 
ubiquitous, such as textiles, garments and footwear, but also in the 
high-technology industry.

“These days, people are talking about Foxconn. It’s just one of them. There are 
many others that are negotiating,” Hsia said in an interview. He declined to 
specify the names of companies other than Foxconn.

Foxconn Technology Group, a subsidiary of Taiwan-based Hon Hai Precision 
Industry Ltd., reportedly plans to establish a manufacturing base in the Modern 
Cikande Industrial Estate in Cikande, Serang, Banten.

Another Taiwanese giant, the world’s biggest contract laptop and personal 
computer (PC) maker, Quanta Computer Incorporated, is currently studying the 
feasibility of setting up a factory in the Bintan Free Trade Zone in Riau 
Islands.

Taiwan has been one of the biggest foreign direct investors in Indonesia, with 
accumulative spending to date reaching US$14.68 billion, according to the 
Investment Coordinating Board (BKPM). During the first half of this year, 
Taiwanese firms invested $109.85 million in Indonesia, up 73 percent from the 
same period last year. 

Taiwan is the ninth-largest foreign investor in the country, driven by the 
existence of big firms like Acer, Chinatrust Bank, Evergreen Group, Pao-cheng 
Shoes Co. and President Food.

Bilateral trade has also grown at a fast pace, surging last year by 16.52 
percent to $12.27 billion from a year earlier, according to Taiwanese trade 
statistics.

Jakarta Taiwan Entrepreneur Association president director Sung Pui-Man said 
that a number of Taiwanese firms would probably enter a wide range of 
industrial sectors — agriculture, food and beverages, pharmaceuticals and 
automotive spare parts — apart from the traditional sectors — textiles, 
garments and footwear.

Sung said that significant increases in labor costs and inadequate energy 
supplies were primary concerns for Taiwanese companies.

Taiwanese businesses, particularly labor-intensive ones that can employ up to 
100,000 workers, experienced a major blow due to a jump in monthly wages that 
cost them up to 30 percent more this year.

Indonesia’s labor costs, however, are still lower than that of China and 
Thailand, but higher than 
Vietnam.

Indonesian Institute of Sciences (LIPI) senior economist Thee Kian Wie said 
that as Taiwanese investment might shift progressively to areas other than 
labor-intensive industry, Indonesia would face a predominant issue — human 
resources.

“We still need to improve the quality of our human resources. At present, most 
of our workers are low-skilled, and this can avert potential investment [from 
Taiwan] in the technology-based industry,” he said.


[Non-text portions of this message have been removed]

Kirim email ke