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Japan's Rail Project Loss To China: Why It Matters For Abe's Economic Diplomacy And For China's !

Very well written.

The main reason of Indonesia choosing Chinese firm is more of the localization and providing techs and jobs than the financing method. It seems guaranteed that the project will be profitable considering that in most part of its Chinese operation region is no better than Java. So government endorsement is not an issue. Taiwan's example is not necessary a good proof due to its silly overpriced cost involving serious corruption of former leader Lee Tenghui and his officials and cronies.

No. The reason China was picked is simply because the Government don't have to pay squat. Because one look at our country & you will understand why:
indonesia-map-physical.jpg

A money spent building a railway means less money for the construction of other sea ports and airports. To put it simply China won by being bolder than the Japanese and Fortune favors the bold.
 
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What Japan lost in some area they gain in others. The Japanese still have contract for developing ports and power plants in the country.


Indonesia is home to Japanese manufacturing arm, and it is in Indonesia that Japan is building our automobiles , assembled and destined for abroad. I think we forget this aspect, and which makes Indonesia's inherent strengths -- complemented , synergized to Japan's industrial goals and objectives:

As they say -- pictures are worth a thousand words:


d1968eb589ee763610f8ab0937167b09.jpg



Toyota-Plant-Visit.jpg



blogger-image-1655973961.jpg




124984299-workers-assemble-toyota-motor-corp-vehicles-gettyimages.jpg




1203_forbesasia-toyota-indonesia_900.jpg




toyota-production.jpg


What Japan lost in some area they gain in others. The Japanese still have contract for developing ports and power plants in the country.

Precisely. There are many slices of cake, as they say. In infrastructure projects it is rather common to lose in one and gain in another. No big deal.

After stealing Japan's most famous tech and now using it against Japan. LOL, China really has no shame.

LOL! Well i cant say anything at all !
 
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Indonesia is home to Japanese manufacturing arm, and it is in Indonesia that Japan is building our automobiles , assembled and destined for abroad. I think we forget this aspect, and which makes Indonesia's inherent strengths -- complemented , synergized to Japan's industrial goals and objectives:

As they say -- pictures are worth a thousand words:


d1968eb589ee763610f8ab0937167b09.jpg



Toyota-Plant-Visit.jpg



blogger-image-1655973961.jpg




124984299-workers-assemble-toyota-motor-corp-vehicles-gettyimages.jpg




1203_forbesasia-toyota-indonesia_900.jpg




toyota-production.jpg




Precisely. There are many slices of cake, as they say. In infrastructure projects it is rather common to lose in one and gain in another. No big deal.



LOL! Well i cant say anything at all !

4 you:
Japan to Make Indonesia as Production Base: Minister

361341_620.jpg

Industry Minister Saleh Husin. TEMPO/Dhemas Reviyanto
TEMPO.CO, Jakarta-Industry Minister Saleh Husin said that Japanese investors operating in the Aichi Prefecture planned to make Indonesia as its production base for foreign markets.

“They said that Indonesia would be one of their main investment destinations. They want to make Indonesia as a production base for exports,” Saleh said in Jakarta on Wednesday, October 21, after a meeting with Aichi Governor Hideaki Omura who led the delegation of the Chubu Economic Federation and the Nagoya Chamber of Commerce and Industry.

The Chubu Economic Federation is an association of companies operating in various industries in Nagoya.

Saleh added that Japan also asked to set a direct flight route connecting Jakarta and Nagoya or Denpasar and Nagoya to facilitate cooperation of the two countries.

“They also asked Indonesia to prepare the infrastructure in order to reduce the logistics cost. I said that we’re accelerating toll road constructions,” Saleh revealed.

Saleh explained that the Indonesian government would prioritize the investment particularly to 14 industrial zones that were being developed in Indonesia.

“With access to industrial zones, they will be facilitated by the government, including the a fiscal incentive,” Saleh added.

Although the Japanese investors had not pledge their commitment, Saleh said that the meeting would boost Japan’s investment in Indonesia.

Japan to Make Indonesia as Production Base: Minister | Economy & Business | Tempo.Co :: Indonesian News Portal
 
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4 you:
Japan to Make Indonesia as Production Base: Minister

361341_620.jpg

Industry Minister Saleh Husin. TEMPO/Dhemas Reviyanto
TEMPO.CO, Jakarta-Industry Minister Saleh Husin said that Japanese investors operating in the Aichi Prefecture planned to make Indonesia as its production base for foreign markets.

“They said that Indonesia would be one of their main investment destinations. They want to make Indonesia as a production base for exports,” Saleh said in Jakarta on Wednesday, October 21, after a meeting with Aichi Governor Hideaki Omura who led the delegation of the Chubu Economic Federation and the Nagoya Chamber of Commerce and Industry.

The Chubu Economic Federation is an association of companies operating in various industries in Nagoya.

Saleh added that Japan also asked to set a direct flight route connecting Jakarta and Nagoya or Denpasar and Nagoya to facilitate cooperation of the two countries.

“They also asked Indonesia to prepare the infrastructure in order to reduce the logistics cost. I said that we’re accelerating toll road constructions,” Saleh revealed.

Saleh explained that the Indonesian government would prioritize the investment particularly to 14 industrial zones that were being developed in Indonesia.

“With access to industrial zones, they will be facilitated by the government, including the a fiscal incentive,” Saleh added.

Although the Japanese investors had not pledge their commitment, Saleh said that the meeting would boost Japan’s investment in Indonesia.

Japan to Make Indonesia as Production Base: Minister | Economy & Business | Tempo.Co :: Indonesian News Portal



Sure !

There are three countries that Japan will make its industrial centers:

1. Philippines
2. Indonesia
3. Vietnam
 
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What Japan lost in some area they gain in others. The Japanese still have contract for developing ports and power plants in the country.


One of some power plant project by Japan near from my City in Central Java :enjoy: ... PLTU Jepara.. Joint Project PLN and Sumitomo Corp...
PLTU_Jepara_Malam.jpg
 
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How could u forget about Thailand?
:coffee:
Sure !

There are three countries that Japan will make its industrial centers:

1. Philippines
2. Indonesia
3. Vietnam

Indonesia and Philippines are poor choices. Both have had a good chance of being manufacturing centre before but most multinationals shutdown and left. Only Singapore, Malaysia and Thailand continued being manufacturing centers. Except for Singapore, we South East asians never successful established any brand. Just become assembly of foreign brands for export.:(
 
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Indonesia and Philippines are poor choices. Both have had a good chance of being manufacturing centre before but most multinationals shutdown and left. Only Singapore, Malaysia and Thailand continued being manufacturing centers. Except for Singapore, we South East asians never successful established any brand. Just become assembly of foreign brands for export.:(


Manufacturing, value added (current US$)
Manufacturing refers to industries belonging to ISIC divisions 15-37. Value added is the net output of a sector after adding up all outputs and subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The origin of value added is determined by the International Standard Industrial Classification (ISIC), revision 3. Data are in current U.S. dollars.
World Bank national accounts data, and OECD National Accounts data files.
Catalog Sources World Development Indicators

Manufacturing, value added (current US$) | Data | Table

Country name 2013

1. China 2,941,337,347,299

2. United States 1,966,495,000,000

3. Japan 1,073,277,493,560

4. Germany 745,240,864,784

5. Korea, Rep. 370,393,593,514

6. Italy 287,482,387,812

7. Brazil 250,149,717,252

8. France 285,590,357,502

9. India 298,892,275,348

10.United Kingdom 231,189,798,427

11.Russian Federation 267,591,226,274

12.Indonesia 205,768,427,070

Mexico 215,689,694,253

Canada 162,080,209,810

Turkey ,169,232,482

Thailand 127,569,680,401

Switzerland 123,855,109,928

Australia 104,170,239,125

Netherlands 93,050,714,496

Sweden 84,367,422,538

Poland 88,003,543,631

Argentina

Belgium

Austria

Malaysia 74,895,426,703

Saudi Arabia 75,536,266,667

Venezuela, RB 50,891,378,335
South Africa

Singapore 52,577,079,837

Puerto Rico
Ireland
Czech Republic
Philippines
Finland

Colombia
Egypt, Arab Rep.
Denmark
Norway
Portugal
United Arab Emirates
Hungary
Nigeria
Chile
Pakistan 31,274,076,599
Ukraine
Vietnam 29,981,829,397

Source: Why has Indonesia developed much faster than India? | Page 3
 
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Manufacturing, value added (current US$)
Manufacturing refers to industries belonging to ISIC divisions 15-37. Value added is the net output of a sector after adding up all outputs and subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The origin of value added is determined by the International Standard Industrial Classification (ISIC), revision 3. Data are in current U.S. dollars.
World Bank national accounts data, and OECD National Accounts data files.
Catalog Sources World Development Indicators

Manufacturing, value added (current US$) | Data | Table

Country name 2013

1. China 2,941,337,347,299

2. United States 1,966,495,000,000

3. Japan 1,073,277,493,560

4. Germany 745,240,864,784

5. Korea, Rep. 370,393,593,514

6. Italy 287,482,387,812

7. Brazil 250,149,717,252

8. France 285,590,357,502

9. India 298,892,275,348

10.United Kingdom 231,189,798,427

11.Russian Federation 267,591,226,274

12.Indonesia 205,768,427,070

Mexico 215,689,694,253

Canada 162,080,209,810

Turkey ,169,232,482

Thailand 127,569,680,401

Switzerland 123,855,109,928

Australia 104,170,239,125

Netherlands 93,050,714,496

Sweden 84,367,422,538

Poland 88,003,543,631

Argentina

Belgium

Austria

Malaysia 74,895,426,703

Saudi Arabia 75,536,266,667

Venezuela, RB 50,891,378,335
South Africa

Singapore 52,577,079,837

Puerto Rico
Ireland
Czech Republic
Philippines
Finland

Colombia
Egypt, Arab Rep.
Denmark
Norway
Portugal
United Arab Emirates
Hungary
Nigeria
Chile
Pakistan 31,274,076,599
Ukraine
Vietnam 29,981,829,397

Source: Why has Indonesia developed much faster than India? | Page 3




wow, Vietnam is the worst one
 
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In my personal opinion, the whole of ASEAN will be one integrated hub with segregation of duties. Indonesia will have the largest and broadest industrial base (note Indonesia has far bigger natural reserves than the rest offering it unique cost advantage), while on hi-value added sectors (e.g. hi-tech, capital intensive) Singapore will lead by far, followed by Malaysia, Thailand, Vietnam.

For reference: 2013 Hi-technology Exports Value By Countries ($ billion):
High-technology exports are products with high R&D intensity, such as in aerospace, computers, pharmaceuticals, scientific instruments, and electrical machinery.
High-technology exports (current US$) | Data | Table
Hi-Tech Export 2013.png
 
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In term of high tech export
In my personal opinion, the whole of ASEAN will be one integrated hub with segregation of duties. Indonesia will have the largest and broadest industrial base (note Indonesia has far bigger natural reserves than the rest offering it unique cost advantage), while on hi-value added sectors (e.g. hi-tech, capital intensive) Singapore will lead by far, followed by Malaysia, Thailand, Vietnam.

For reference: 2013 Hi-technology Exports Value By Countries ($ billion):
High-technology exports are products with high R&D intensity, such as in aerospace, computers, pharmaceuticals, scientific instruments, and electrical machinery.
High-technology exports (current US$) | Data | Table
View attachment 266372

After N-219 get into production line ( I hope), Indonesia aviation industry will be growing much I believe. Even at this level we are the best in SEA in this sector. Much of high tech companies in SEA is actually owned by Japanese and Taiwan corporations.
 
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In term of high tech export

After N-219 get into production line ( I hope), Indonesia aviation industry will be growing much I believe. Even at this level we are the best in SEA in this sector. Much of high tech companies in SEA is actually owned by Japanese and Taiwan corporations.

Yes that's the situation at the moment, there are no signs that JP/TW will pull out from ASEAN, on the contrary I believe they might further increase investment, and if SK is taken into account, there is no shortage of supply in capital & tech transfer. I suppose Indonesia will definitely grow fast in all areas including high-tech, while SG/MY/TH will also do their best in retaining existing industries.
 
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