The exports of the products are expected to reach $84.7 million per year."Jakarta (ANTARA News) - A Japanese musical instrument manufacturer has committed to investing US$43.4 million in Indonesia, according to the Investment Coordinating Board (BKPM).
The Japanese investor will avail the three-hour investment licensing service and direct construction investment incentive (KLIK).
BKPM Deputy for Investment Promotion Himawan Hariyoga stated that the Japanese investor will produce acoustic pianos, electric and digital pianos, violas, and piano components.
"The exports of the products are expected to reach $84.7 million per year," he noted in a press statement released on Thursday.
He said nearly 99 percent of the products will be exported, and the rest will be sold in the domestic market.
The Japanese company will build its plant on 15 hectares of land in an industrial estate in Bekasi, West Java, utilizing the KLIK facility and will employ 1.6 thousand workers once the construction work on the plant is completed, he revealed.
He said the construction of the plant will be started in May 2017 and completed a year later. The company is expected to start exporting its products in September 2018.
"They have obtained a permit through the three-hour licensing service at the BKPM. In applying for the permit, they were accompanied by a Japanese integrated promotion team at the BKPM," he noted.
According to the BKPM, the realization of Japanese investment in Indonesia had reached $5.4 billion last year, placing Japan in the second position after Singapore.
(Reported by Ade Irma Junida/Uu.S012/INE/KR-BSR/A014)
Editor: Priyambodo RH
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