Japanese Firm to Invest $1m in Bali Coconut Wood Factory
Jakarta. A Japanese firm has expressed interest in investing Rp 15 billion ($1.1 million) in a factory in Bali, to make furniture from coconut wood, a senior official at the Investment Coordinating Board, or BKPM, said.
Coconut wood has become the main alternative source of hardwood, especially in the Asia-Pacific region, where coconut trees grow in abundance. Manufacturers consider coconut wood cheaper than hardwood, which could potentially reduce any harm to the natural forests.
"One of the contributing factors is the abundant supply of good quality coconut trees in Bali as a producer [...] The company will process the coconut trees to create furniture and products for home decoration," BKPM chairman Franky Sibarani said in a statement on Sunday (12/06).
Additionally, the main target market consists of Japanese tourists, who also spend longer periods in Bali.
"In the future, the firm is [looking at] Surabaya [East Java] as another potential site for building a factory since they also produce good quality coconut trees," Franky added.
Saribua Siahaan, BKPM's promotional representative in Tokyo, said the investment agency is ready to facilitate Japanese companies who want to invest and expand their business in Indonesia.
"All permits and projects will be facilitated and monitored," Saribua said.
According to the BKPM, Japanese investment in Indonesia amounted to $1.58 billion in the first five months of this year, consisting of 427 projects, which provided employment to 28,377 people.
Last year, Japanese investment in Indonesia stood at $2.87 billion, with a total of 2,030 projects which provided employment to 115,400 people.
Japanese investment in Indonesia is spread out across sectors such as electronic, machinery, chemical and pharmaceutical. However, the bulk of it is still in manufacturing, particularly the automotive sector.
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