"Our target is to increase the local content to 40 percent and we hope to reach the target in five years," President Director of Mitsubishi Jaya Elevator and Escalator, Christian Satrya, said here on Friday.
He acknowledged it would not be easy to bring the target to reality as in addition to investment factor Mitsubishi is strict in maintaining quality.
He said he hoped the government and the people would appreciate the plan to raise the local content.
He said the Industry Ministry already has regulation on local content of industrial products unfortunately the regulation is not fully effective.
Earlier, the Indonesian Electricity Community (MKI) asked the government to immediately implement the policy in local content (TKDN) for power generating industry by giving greater importance to transfer of technology by foreign investors.
"The government has to strongly require foreign vendors to comply with the regulation on transfer of technology that we could increase local content," deputy chairman of MKI Andri Doni said on Thursday.
Doni said the local content for power plants under the program of building new power plants with a total capacity of 35,000 MW is still below expectation at 40 percent.
The local content for power plants with a capacity of 600-1000 MW is only in civil works such as ground leveling and electric mechanical installation, he said, adding, boilers , generator turbines and condensers are still imported.
He said the government already issued regulation in Presidential Regulation (Perpres) No 14 of 2017 on acceleration of development of electric infrastructure that needs only to be implemented.
Reporting by Muhammad Razi Rahman
Editing by A. Saragih