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POSCO Daewoo signed with PT PAL

POSCO Daewoo has signed a $150 million contract with PT PAL, Indonesia's state-run shipbuilder, to supply engines and other parts for the latter's patrol boats and other naval vessels.

The trading arm of steelmaker POSCO held a ceremony, Wednesday, in Jakarta, where CEO Kim Young-sang signed a memorandum of agreement with PT PAL CEO Firmansyah Arifin.

Under the deal, POSCO Daewoo will provide the Indonesian shipbuilder with various components necessary for building 10 patrol boats and one combat support ship over the next few years. Once completed, the ships will be delivered to the Indonesian Navy.

"The latest contract shows that we have been successful in doing business in Indonesia and earned a great deal of trust from our partners there," Kim said. "We will expand our reach to other areas of shipbuilding, such as offshore oil rigs, fishing vessels and cruise ships."

In 2003, the company also signed a contract with PT PAL to supply engines and other parts for two landing platform docks (LPD). Between 2006 and 2010, POSCO Daewoo supplied tools and materials to the Indonesian shipbuilder for construction of LPDs, while sharing its knowhow with local partners.

The trading firm is also seeking to sign parts supply contracts with shipbuilders in Brazil and other South American nations.

source from<>http://www.koreatimes.co.kr/www/news/biz/2016/08/123_211148.html

Japan Expresses Interest in Indonesia`s Auto Component Factory

A company in Japan`s Okayama Prefecture is interested in the automotive component business in Indonesia, Okaya Prefecture Governor Ryuta Ibaragi said.

During his visit to the Indonesian Capital Investment Coordinating Board (BKPM) here on Friday, Governor Ibaragi said the automotive component company, which has supplied components for Mitsubishi cars, was interested in developing an auto component factory in Indonesia.

"There are 422 companies from Okoyama Prefecture that have made investments outside Japan. In Indonesia, we have a number of large companies which made investments," he said, in a written statement made available in Jakarta on Saturday.

Meanwhile, Okayama Prefecture's governor said there is considerable interest among Japanese businessmen to conduct business in Indonesia. However, there are a number of concerns about the investment climate in Indonesia from investors from the Prefecture Okoyama, he said, including the problem of the country's unpredictable wage system. 

Ibaragi said that during his visit in Indonesia he found Indonesians to be quite open to Japanese companies.

"Regarding the MRT project, we thank the Indonesian government for its trust in a Japanese company. Of course, we will not ignore it and will maintain that trust," he said. BKPM Chief Franky Sibarani said Japanese companies were given priorities regarding assistance from investment facilities.

Japanese investment is the main component of the economic growth driver in Indonesia, he said.

"We are ready to assist investment from Japan. The Marketing Office for the Japan area and the BKPM representative office in Tokyo could be used by investors and companies in Okoyama to plan business activities in Indonesia," he said.

He noted that his office was planning to conduct an investment promotion in Yokoyama early next year to win over interest by Japanese investors.

"One of the major investors is Sumitomo. We will invite a number of companies which have made investments in Indonesia to share their successful experiences with their colleagues in Japan," Sibarani said.

In the first half of this year, Japan was ranked third in foreign investments, amounting to US$1.6 billion after Malaysia (US$2.6 billion) and Singapore (US$2.3 billion). Coming next were South Korea (US$0.8 billion) and the United States (US$0.6 billion).

Indonesia plays hardball with smartphone manufacturers

When Polytron became the first Indonesian company to produce 4G-capable smartphones last year, it changed the 'Manufactured in China' inscription on its handsets to 'Made in Kudus,' a town in Central Java.

Polytron relocated production from China to comply with 'local-content' rules introduced in 2012. The regulations have raised concerns about higher manufacturing costs and hung question marks over an industry championed by the Indonesian government.

The United States has pressed Indonesia to relax the rules, which it says will hamper efforts of tech giants such as Apple Inc to expand into one of the world's last big markets where use of smartphones has yet to truly take off.

Assembling far from China's electronics supply chain means it costs up to 50 percent more to manufacture a mobile phone in Indonesia, according to Polytron, a smaller player among local phone brands.

"Honestly, we are doing it because of the regulation, to be in compliance," Polytron spokesman Santo Kadarusman told Reuters.

The government ramped up enforcement of the rules last year. The regulations are part of a push under President Joko Widodo to transform Indonesia from an economy that consumes products into one that produces them, in his attempt to boost economic growth and eliminate the country's trade deficit.

Most mobile phones sold in Indonesia are made in China. There was no phone manufacturing industry in Indonesia until last year when 15 companies submitted plans to the Industry Ministry to start production. Among them was Samsung Electronics Co Ltd, which opened a factory near Jakarta.

The regulations require importers of smartphones to manufacture in Indonesia or have their import licenses revoked by 2016 or 2017, depending on when they received their license.

The ministry is working on a new regulation targeting 4G smartphones. It is expected to be completed in June and come into force on Jan. 1, 2017. The rule will require all companies that sell 4G-capable devices, including Apple and Samsung, to produce a certain percentage of 'local content' in Indonesia.

Apple did not immediately respond to requests to comment on the local content rule. Samsung declined to comment.

It is unclear as to whether this regulation will replace existing requirements or how local content will be measured.

Indonesia needs a bigger share of the $3 billion in annual phone imports to reduce its trade deficit, said Minister for Communications Rudiantara, who like many Indonesians goes by one name. "This phone is $600-$700, so we want $250-$300 of that to go to Indonesia," he said, pointing to his iPhone.

LOCAL CONTENT

Local content could include design through intellectual property fees in addition to manufacturing of handsets, Rudiantara said. He declined to give further details on the way the percentage of local content would be calculated.

Around a fifth of local content would have to be research and development, meaning companies would need to have a design development center in addition to manufacturing, said Industry Minister Saleh Husin.

Critics of the 'Made in Indonesia' rule, including the American Chamber of Commerce, say the requirement is confusing and could increase costs, restrict access to technology and violate World Trade Organization (WTO) obligations.

The U.S. Trade Representative is raising these concerns with the Indonesian government and the WTO.

But Polytron is optimistic about the move, and expects its mobile division to make its first profit since it started in 2011 by the end of the year.

"Our support from the government is the promise that other 4G brands cannot sell in Indonesia if local content is not 30 percent. Polytron is already at 35 percent. If Polytron gets to 40 percent local content, [the government told us] there is a possibility the local content requirement will go to 40 percent," Polytron spokesman Kadarusman said.

He declined to comment on how the local content percentage was calculated.

Rudiantara said that after hearing of complaints, he was "undecided" on whether the required local content would be 40 percent, which he previously told companies. He planned to release a draft of the regulation in mid-April to give companies time to raise concerns.

He said higher costs would make it difficult for Indonesia to compete purely on manufacturing, but hoped his switch to include research and development would help.

"I'm not crazy. Ministers should have nationalism, but not chauvinistic nationalism," Rudiantara said. "If Indonesia competes only on producing hardware, it's going to be difficult."

source:http://www.reuters.com/

Manufacturers Indonesia, Manufacturer Indonesia, Manufacturing Indonesia, Indonesia Manufacturers, Indonesia Manufacturer, Manufacturing companies Indonesia

Indonesia is the potential market for the shoe manufacturing.  The Indonesian shoe manufacturers are placed a head with the others manufacturers in the business markets. The feasibility of marketing and manufacturing shoes is highly focused in Indonesia.   

Indonesia manufacturers have also set their path in the textiles and garments industry.  They have a competitive advantage with regard to this industry compared to other countries. The objective of the Indonesian manufacturers  is to evaluate the variables that determine its international competitiveness.

 

Indonesia is an important global resource for this garments industry. Over the last three decades, the Indonesia manufacturers had grown a lot. They started from being a small sector and now they are the major contributor to the country’s total industrial revenue. In Indonesia, the ministry of Industry has categorized textiles and clothing as a strategic industrial sector. The manufacturers in the textile and clothing industry are also important to Indonesia as they contribute to the country’s economy.

Indonesia manufacturers are one of the best competitors in textile and clothing industry. However, Indonesia still has a very tough competition with China and Thailand. But still it has a competitive advantage with other countries and is also an important global centre for the textile and clothing industry.

 

Bizbilla have a wide range of Indonesia manufacturers available in the local and the global b2b market place. The Indonesia manufacturers from Bizbilla will help you expand your business in the local and global b2b market place with their business catalog.