Japanese investor expects more conducive investment after presidential election

Japanese investor expects more conducive investment after presidential election

President and CEO Kao Corporation Japan, Michitaka Sawada, planted a tree to mark the opening ceremony of PT Kao Indonesia's new factory in Karawang, West Java, on Thursday, June 19, 2014. (Azi Fitriyanti/Antara)

The demographic bonus will ensure Indonesia's growth in the next 20-30 years.
Jakarta (ANTARA News) - Kao Corporation, one of the Japanese investors in Indonesia, is expecting a more conducive investment climate in Indonesia after the presidential election on July 9.

"At the moment, Kao is observing the situation, and we do hope the presidential election will run smoothly. Hence, after the election, the investment climate might become more conducive," announced PT Kao Indonesia's Vice President and Director Sales Division Jimmy Agus Liono at the Karawang International Industry Center (KIIC) in West Java on Thursday.

Jimmy added that the more stable the political condition in Indonesia is, the more business sectors will grow, as the investors will continue their investment or even increase quantity.

"It is possible that other investors will also do business in Indonesia," he added.

Jimmy noted that Indonesia currently was enjoying the so-called "demographic bonus," in which the productive age to work was as much as its growing middle class.

"The demographic bonus will ensure Indonesia's growth in the next 20-30 years," he said.

The President and CEO of Kao Corporation Japan, Michitaka Sawada, noted that Indonesia was a potential market in the Asian region, mainly in Southeast Asia.

Despite the corporate's interest in doing business in Indonesia, Sawada stressed that Kao aimed to contribute to domestic development through good corporate citizen program, such as creation of employment and transferring technology.

"Our mission is to contribute to the development of Indonesia, in line with our efforts to achieve global market, which also stimulates economic growth and creates employment in the region," he claimed.

The current market share of Kao Corporation in the global market was 70 percent, of which Indonesia alone shared 20 percent, which makes the country a potential region for business development.

"Therefore, we aim at contributing to the development of Indonesia," Sawada noted.

PT Kao Indonesia has officially launched its second factory at a 140 thousand square meter area located on the Karawang International Industry Center (KIIC) in West Java.

The investment of the factory building and its facilities reached 10 billion yen or around US$128 million.

The second factory is expected to hire around 400 new employees until the end of 2014.(*)

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