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Mitsubishi in Indonesia

Farah Fitriani Faruq
Farah Fitriani Faruq
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Mitsubishi in Indonesia
Japan’s Mitsubishi Corp. is committed to expanding its business in Indonesia and will back up that commitment with capital, the Investment Coordinating Board chief said a few days agp. Gita Wirjawan, who heads the board, also known as the BKPM, said Mitsubishi would invest in projects in sectors ranging from automotives and energy to infrastructure. “The total investment plan in the next five to 10 years ... is around $18 billion to $20 billion. It is not small at all,” Gita said after meeting Mitsubishi president and chief executive Ken Kobayashi and President Susilo Bambang Yudhoyono at the president’s office in Jakarta. He also said Mitsubishi’s plan illustrated the continued strong interest in this country from foreign investors. Last month, South Korean, French and Indian investors all announced their intent to pour more money into the country. Among the projects the Japanese firm plans to invest in is the Donggi Senoro liquefied natural gas plant in Sulawesi. Reuters reported on Jan. 24 that Mitsubishi would take a 45 percent stake in the $2.8 billion joint venture. It will also participate in a $4.6 billion nickel smelter project in Halmahera, North Maluku, along with Weda Bay Nickel, a unit of French mining and metallurgical group Eramet, and Indonesian nickel miner Aneka Tambang. Mitsubishi will invest in a railway project for Soekarno-Hatta International Airport and the Metropolitan Priority Area project, which involves building infrastructure such as access roads and power plants in urban areas. It will also expand its existing automotive business in Indonesia. Mitsubishi also plans to boost car sales to around two million units within four to five years, Gita said. The company is already involved in the country’s petroleum, shipping, fertilizer and industrial machinery sectors. “Indonesia has been courting Asian investors to increase their business here,” said Jongkie Sugiarto, president director of Hyundai and vice chairman of the Indonesian Automotive Industries Association (Gaikindo). Toyota also announced its intention to invest last month. It plans to produce low-cost cars through its Daihatsu unit, Reuters reported. It will invest 20 billion yen ($244 million) to build a factory, which is scheduled to begin operations in 2013, and produce 50,000 cars in its first year. News Source : The Jakarta Post

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