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2012 REPORTS > INDONESIA - MARCH 17, 2012
Indonesia
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Rebuilding Japan from overseas   Print this page | View complete report (2.1 MB., PDF)
Jakarta Japan Club Chairman and Sumitomo Indonesia President Director Masayuki Hyodo
One year after the March 11 earthquake, Japan’s outlook and strategy in the global market has changed drastically. Japanese companies have been encouraged to expand in neighboring markets in Southeast Asia, particularly Indonesia.

“Mining and the automotive sector are two very important industries, especially because Indonesia has a population of 200 million, a growing middle class and a high demand for energy. This will be a strong engine of economic growth,” says Masayuki Hyodo, chairman of the Jakarta Japan Club and president director of Sumitomo Indonesia.

The head of Japan’s largest car-maker in Indonesia agrees.

“Japanese car manufacturers control 93 percent of the market in Japan. In Indonesia, Japanese automotive companies have 95 percent of the market. There are so many opportunities for us to grow, which is why many carmakers are increasing production capacity,” says Toyota Motor Manufacturing Indonesia President Director Masahiro Nonami.

The car manufacturing giant is spending about $534 million to build a second plant in Indonesia amid growing demand in Southeast Asia’s largest economy. The plant is expected to be operational next year with initial production set at 70,000 vehicles a year. Production will eventually increase to 120,000 units.

In addition to automotive and mining, the finance, oil and gas sectors have become important.

As investments pour in, the government foresees Indonesia will be one of the 10 largest economies in the world by 2025.

“Everyone agrees that Indonesia has this kind of potential, especially if it improves its infrastructure. Based on bilateral agreements for infrastructure expansion, the Indonesian and Japanese governments are working together to enhance the infrastructure in several sectors, especially in the Jakarta region,” says Hyodo.

“These projects will be implemented in the next several years to systematically increase the capacity to accept more investment for the next 10 years. This project will include the expansion of the airport in relation to the seaport expansion,” he says.

Itochu Indonesia President Director Takuji Motooka adds: “There is a bottleneck in Indonesia’s infrastructure. This is why we are focusing heavily on helping Indonesia to develop. It is one of our three main business divisions, aside from retail and natural resources. Infrastructure can attract more foreign investment into Indonesia and we want to contribute in promoting this.”
 
 
Table of Contents
Now, more than ever
Taking an early chance proves the right decision
Japan’s LNG partner
A peek at the future of sustainable chemical products
Production taken to heart at family-owned export leader
Good chemistry between the two countries
A robust history links East Java with Japan
Indonesia as an industrial development and design hub
Oils, scents and flavors: from Indonesia’s hills to the world
Heading for tomorrow
Caring is the common thread for a textile innovator
Palm products in ‘harmony’ with consumers
Pioneer in soil re-mineralization
A dream becomes reality: sustainable, delicious shrimp on every table
Oiling the gears of a world-class economy
Progressive leadership drives a strong player in a niche market
Adding Indonesian knowhow to nature’s bounty
Rebuilding Japan from overseas
In Indonesia as in Japan, always by your side


Ebox
ASC 9th Floor, Summitmas I Jl. Jend. Sudirman
Kav. 61-62, Jakarta 12190 Indonesia
Phone: (021) 520 2111

PT Asahimas Chemical is a multinational joint venture in Indonesia that operates Southeast Asia’s largest and fully integrated state-of-the-art Chlor Alkali-Vinyl Chloride plant. It manufactures basic chemicals such as caustic soda (NaOH), ethylene dichloride (EDC), vinyl chloride monomer (VCM), polyvinyl chloride (PVC), hydrochloric acid (HC1) and sodium hypochlorite (NaC1O), which are crucial to many of Indonesia’s fastest-growing industrial sectors.
www.asc.co.id

Employing over 7,000 workers and using sophisticated machinery, PT Dan Liris plays an important role in the integrated textile and garments industry of Indonesia. Listed as one of 100 biggest exporters by national business magazine SWA in 2010, it has gained an international profile by producing garments for well-known brands such as Marks & Spencer, British Home Stores, House of Fraser, and for Japanese brands such as Bandai and Sanrio.
www.danliris.com

Djasula Wangi is a leading producer and exporter of quality essential oils, vanilla beans and clove leaf oil derivatives in Indonesia. Celebrating 50 years, the company distributes its products to more than 20 countries around the world.
www.djasulawangi.com

PT Idemitsu Lube, a subsidiary of Idemitsu Kosan Global, has over 100 years of experience in providing top-quality oils and lubricants for its customers. Experiencing constant expansion due to rising demand in the country, Idemitsu Lube produces automotive lubricant oils for car and motorcycle manufacturers, as well as industrial lubricants for machining processes.
www.idemitsu.com

The Japan External Trade Organization (JETRO) in Indonesia has played a prominent role in strengthening trade and investment between Indonesia and Japan. It provides information and consultation services to Japanese small and medium-size enterprises (SMEs) planning to set up their operations in the country.
www.jetro.go.jp/indonesia

Jakarta Chamber of Commerce and Industry (JCCI) was established in 1967 to provide information, consultation and communication services to its members and the government regarding their individual needs. It also conducts seminars and management training programs for small and medium-size enterprises.
www.kadin.or.id

East Java Chamber of Commerce and Industry plays a vital role as an economic entry-gate for the Eastern Indonesia Zone. With a large area in which abundant resources are being industrially processed, traded and serviced, East Java is the most attractive province in Indonesia for foreign investment now and in the future.
www.kadinjatim.or.id

Indonesian Mining Association (IMA) serves as a link between the government and mining companies in the country. Aside from organizing lectures, seminars and training activities for its members, it also runs periodic conferences on domestic mining, publishes proceedings and mining information, and represents the Indonesian mining industry in national and international meetings.
www.ima-api.com
 
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