Japanese investor will not pull out of Batam: BKPM

BATAM. The Capital Investment Coordinating Board (BKPM) chief made assurance that the Sumitomo Japanese investor will not pull out of Batam's Free Trade and Free Port area unlike what had been reported.

BKPM Head Franky Sibarani affirmed here on Wednesday that PT Sumitomo Wiring System Batam Indonesia (SWSBI) will instead expand its business in the area.

PT SWSBI has confirmed its decision to invest US$ 5 million to expand its business and will absorb some 1.5 thousand workers.

Franky said the business expansion by Sumitomo indicated that foreign investors are responding to Indonesia's improving investment climate.

"Japan is one of the countries that is active and plays a significant role in supporting the government's efforts to attract foreign investment," Franky noted.

Therefore, when Franky heard reports that they will pull out of Batam, the BKPM came forth to clarify the matter.

The investment board chief hailed the expansion plan of PT SWSBI.

"This is a positive thing, and we have to laud it. The BKPM has made note of the several concerns voiced by companies in Batam with regard to frequent worker rallies and the condition of infrastructure that needs to be improved," Franky pointed out.

Senior General Manager of PT SWSBI Djoko Adiprabowo explained that his company will start implementing its expansion plan by the end of this year.

He said that several new machines will be imported to support the expansion plan.

"The machines will arrive in December, next month. Production will start in February 2016," he revealed.

Located in the Batamindo Industrial Zone, the SWSBI has a production capacity of 260 thousand sets of wire harness per annum. All the production is designed for export to Thailand, Vietnam, and China.

The value of SWSBI's exports in the first semester of 2015 stood at US$383 million.