Sharp, LG to relocate factories to Indonesia

[Nike]

Sharp, LG to relocate factories to Indonesia

• News Desk
  The Jakarta Post
  

JAKARTA / Tue, June 18, 2019 / 05:51 pm

Local beat: LG Electronics launches the 5K high resolution monitor late last year. LG plans to relocate its air conditioning factory in Vietnam to Tangerang, Banten (Courtesy of LG Electronics/-)
Japanese and Korean electronics companies Sharp Corp. and LG plan to relocate their factories from Thailand and Vietnam, respectively, to Indonesia as part of their investment consolidation plans in Southeast Asia.

Industry Minister Airlangga Hartanto said the relocations would further strengthen their operations in Indonesia, where they have built their respective production bases for a number of electronics products.

“We are monitoring the process. Discussions have been going on for quite some time,” Airlangga said at a post-Idul Fitri gathering at his office in Jakarta last week.

LG’s public relations officer was reluctant to elaborate on the company’s relocation plan when contacted by The Jakarta Post, while Sharp’s government relations officer said on Monday that the company’s relocation was part of plans to strengthen its Indonesian operations. He refused to elaborate further.

Meanwhile, the director for electronics and telematics at the ministry, Janu Suryanto, said Sharp would relocate its twin tub washing machine facilities from Thailand to its Indonesian production base in Karawang International Industrial City (KIIC).

“So there will be a production line addition. It will also be for the export market. Later on, it will employ hundreds of workers.” Janu told the Post on Wednesday last week.

Meanwhile, LG will relocate its air-conditioning factory from Vietnam to its production facility in Legok, Tangerang. “They will soon start production and will sell about 25,000 units in September this year,” Janu said. (tkp)

https://www.thejakartapost.com/news/2019/06/18/sharp-lg-to-relocate-factories-to-indonesia.html

 

[Samlee]

Why Not Pakistan??????


Anyway Congrats To Indonesia

 

[Crusher]

Conratulations to Indonesia

 

[lcloo]

Sharp is now owned by Taiwanese company Foxconn with 66% shareholding. Moving factories to Indonesia is a far sight strategy. Vietnam will be having too many factories due to Trump's tariff war, the result will be increase in workers wages and factory rental/purchase, also transportation and energy supply will be struggling hard to meet sudden increase in demand which may result in delay production and shipments.

Also relocating to ASEAN's most populous country means largest ASEAN market is where factory is, and abundant supply of workers means cheaper wages.

 

[KAL-EL]

Congrats to Indonesia

 

[Nike]

Investment environment in Indonesia quite good: KIND
18th Jun 2019 19:34

An opening ceremony of an office of the Korea Overseas Infrastructure and Urban Development Corporation (KIND),

Jakarta (ANTARA) - Ryan Lee, Head of Programme Management and Project Development Division of Korea Overseas Infrastructure and Urban Development Corporation (KIND), has believed that Indonesia has a very good investment environment.

"The investment environment in Indonesia, in my opinion, is quite good," Ryan Lee said, at a ceremony marking the opening of the KIND office in Jakarta on Tuesday.

KIND is an organization that provides wide-ranging support for Korean companies to expand their overseas PPP investment and development business activities. KIND will play the role of supporting the overall aspects of business, from identifying projects and supporting project development and finance, to making direct investments.

As an organization, KIND serves as a facilitator, coordinator, and investor in Korean businesses’ local and global public-private partnership (PPP) projects in Indonesia.

Regarding the investment environment, according to Lee, the Public-Private Partnership procedure, institutional, and legal frameworks in Indonesia are exemplary and can become a benchmark for other developing countries.

In his presentation during the opening ceremony, Lee also mentioned the report issued by the World Bank in February 2019, which placed Indonesia at fifth rank in the list of the world's best investment destinations, and at the second position for the Asia-Pacific region.

"It is obvious that Indonesia has become the center of investors' interest," Lee said.

For this reason, South Korea opened its corporate organization office for infrastructure and urban development (KIND) in Jakarta. KIND's presence in the country is in line with the Indonesian government’s current intensified efforts to build and develop infrastructures throughout the country.

Lee stated that, so far, there are some 175 South Korean companies that are operating as many as 558 construction projects in Indonesia, valued at US$ 19 billion.

"There are 16 projects (in Indonesia) that KIND is reviewing for investment," Lee said.

(INE)
By Yuni Arisandy Sinaga

Editor: Fardah Assegaf

COPYRIGHT © ANTARA 2019

 

[Zapper]

Why Not Pakistan??????

The ASEAN advantage and also having supporting industries along with necessary infrastructure

 

[Type59]

The ASEAN advantage and also having supporting industries along with necessary infrastructure

Why not india?

 

[Brainsucker]

Why Not Pakistan??????

Anyway Congrats To Indonesia

They build a factory near the place they sell their wares. Indonesia has 250 millions people. So we are a very good potencial market for them.

Why not india?

Well, we don't know if they have already have the factories there or not.

 

[Zapper]

Why not india?

Sharp & LG both are Japanese firms originally but Sharp is owned by a Taiwanese company. Both firms are fab related and should have supporting fab/semi-conductor industries which are only existent in US, Japan, SK, Taiwan and China. Due to the on-going trade war, China is out of choice while the others have high manufacturing/labor costs. Indonesia is close to these fab dominant countries along with the ASEAN advantage and cheap workforce. Though Vietnam is a viable choice, as @lcloo pointed, Vietnam & India will receive a lot of industries from the trade war which will drive up labor and real-estate costs eventually

Even though India has good supporting industries & infra for heavy manufacturing, automobiles, aerospace, textile, pharma, IT etc...the fab industry is almost non-existent if this is particularly for phones & chipsets. Regarding others, LG already has factories in India to manufacture all their electronic home appliances. Sharp India had some manufacturing operations but was temporarily shut down - I'm not sure if they reopened it

Well, we don't know if they have already have the factories there or not

 

[Dr. Abdul Basit]

Why Not Pakistan??????


Anyway Congrats To Indonesia

I am quite skeptic about such transfer of productions.... What's in it for the country where they move
Some jobs, increase in FDI, at the cost of
Exploitation of human resource (paying less, getting more work)
Relatively unsafe working environment since occupational laws are always not developed in developing countries
No environmental safety procedures to be followed again since they are protected by absence of legislations in the poorer country and protected by their own laws
And so many more
It's definitely a win win for the multinational corporations but not so much for developing country. Not at least for the common man

 

[Brainsucker]

I am quite skeptic about such transfer of productions.... What's in it for the country where they move
Some jobs, increase in FDI, at the cost of
Exploitation of human resource (paying less, getting more work)
Relatively unsafe working environment since occupational laws are always not developed in developing countries
No environmental safety procedures to be followed again since they are protected by absence of legislations in the poorer country and protected by their own laws
And so many more
It's definitely a win win for the multinational corporations but not so much for developing country. Not at least for the common man

What's your point?

 

[Dr. Abdul Basit]

What's your point?

Dear you can draw inference easily, if your legislation is not appropriate, and dealing with MNCs is not on same level, then they can rather be a nuisance than good news...for example Nestle in Brazil and other countries, Esso in Chad, the list is long

 

[Humble Analyst]

Why Not Pakistan??????


Anyway Congrats To Indonesia

If the energy is stable, skilled labor available and government has good policies they will come but in view of law and order, recent past energy crisis and red tape does not help

 

[Robin Wong]

Followed by Panasonic, which is planning to relocate its factory from Malaysia to Indonesia shortly.

Setelah LG dan Sharp, Panasonic akan Pindahkan Pabrik ke RI

Jakarta - Perusahaan elektronik Sharp asal Jepang dan LG asal Korea Selatan merelokasi pabriknya dari Thailand dan Vietnam untuk meningkatkan lini produksinya di Indonesia. Selain itu, Panasonic juga mau mau merelokasi pabriknya dari Malaysia ke Indonesia.

Hal itu disampaikan Direktur Industri Elektronika dan Telematika Kementerian Perindustrian (Kemenperin) Janu Suryanto.

"Tambahan lagi Panasonic juga mau minta lini produksinya diresmikan Pak Menteri (Perindustrian). Jadi ada relokasi lagi dari Malaysia," kata dia saat dihubungi detikFinance, Jakarta, Kamis (20/6/2019).

Namun dia belum bisa menjelaskan detailnya lebih lanjut. Dia menjelaskan lebih banyak mengenai Sharp yang akan merelokasi pabrik salah satu produknya dari Thailand ke kompleks pabrik yang ada di Karawang International Industrial City (KIIC).

"Kalau itu nanti tanggal 10 Juli yang Sharp sudah mulai apa namanya, Pak Presiden diundang, mulai inagurasi. Pabriknya sudah di KIIC, tinggal nambahin lini produksi saja, penambahan istilahnya," ujarnya.

Kemudian untuk relokasi pabrik LG dari Vietnam ke Indonesia adalah untuk menambah lini produksi pendingin ruangan atau AC di Indonesia.

"Kalau sharp kan dia relokasi dari Thailand. Kalau LG sudah ada juga di Legok, Tangerang. Jadi ada lini produksinya ditambahin itu buat AC. Selama ini mereka impor yang (produk AC) LG," jelasnya.

Penambahan lini produksi LG ini akan mulai aktif memproduksi AC pada September 2019 ini dan siap dipasarkan.

"Juli sudah inagurasi kalau yang LG, sekarang baru di-setting lini produksinya. Jadi September mereka sudah produksi pertama. Kan itu di-tes dulu kan," tambahnya.

https://finance.detik.com/industri/...n-sharp-panasonic-akan-pindahkan-pabrik-ke-ri