The decision to set up a 64 thousand-square-meter plant, worth US$50 million, in an industrial area of Artha Hill is right, Hadi stated, as he witnessed the signing of a cooperation agreement between LS Cable & System and PT Artha Metal Synergy at the Indonesian Embassy in Seoul, on Monday.
In a statement received by Antara here on Monday, the ambassador hoped that the plan to build a cable factory could meet the government`s target to distribute sufficient electricity throughout the archipelago, and the target was expected to be easily realized.
"I call Indonesia in the formula 3 + 2. The three main things that make Indonesia the best place are the size of the existing market, access and availability of raw materials, and the abundance of labor force. In addition, the two driving elements are the pro-business government and the safety in Indonesia," Hadi noted, while quoting this week`s release by Gallup Report, Switzerland-based international polling agency, which places Indonesia as the world`s top 10 safest countries.
The plant will be ready for operation by the end of 2019, with a target of generating sales worth $100 million in 2025.
Signing the joint venture agreement are President Director of PT. Artha Metal Synergy Felix Efendi, Artha Graha Network Panji Yudha Winata and his Korean partner CEO and CSO LS Cable & System Ltd. Myun Roe-Hyun and Ju Wan-Soeb. Also witnessing the signing was the Director of Indonesia Investment Promotion Center in Seoul, Imam Soejoedi.
Meanwhile, CEO of LS C & S CEO, Roe-Hyun Myung, remarked "Indonesia is one of the fastest growing countries in the world that has become an attractive market that has gained momentum during the visit of South Korean President Moon Jae-in to Indonesia last November."
In response to this deal, AMS CEO Felix Effendi explained that the joint venture is aimed at strengthening the two-sided cooperation. "Our joint venture not only signifies the collaboration of both companies but also the strengthening of the bond between the two countries," he noted, explaining that the joint venture will utilize the expertise and experience of each party and provide a significant technological transfer process from one of the best power cable manufacturers in the world.
LS C & S was established since 1962. In the last 56 years, LS C & S has grown to become one of the largest power cable manufacturers in the world by utilizing innovative technology in its products. With the establishment of this plant in Indonesia, LS C & S will have seven production companies in Asia, including in China, India, Myanmar, and Vietnam.
On the other hand, AGN`s business space spans many sectors throughout Indonesia, such as property, finance, agriculture, and hotels. Indonesia itself is the largest consumer of electrical cable in ASEAN, with growth of more than eight percent per year. This is driven by the government policy in massive infrastructure development, especially in the fields of electrical energy and construction.