US Pharma Company to Relocate Plant to Central Java From China

Jakarta. Indonesia is preparing a 4,000-hectare industrial complex in Brebes, Central Java, for a US pharmaceutical company relocating from China, after a discussion last month between President Joko "Jokowi" Widodo and US President Donald Trump.
Sanny Iskandar, the chairman of the Industrial Estates Association (JKI), confirmed the news to Investor Daily at the weekend, saying that state-controlled Kawasan Industri Wijayakusuma industrial estate in Brebes would soon welcome the as-yet-unnamed company.
"They have not decided how much they would invest in the new factory," Sanny said.
The State-Owned Enterprises Ministry owns 51.09 percent of Kawasan Industri Wijayakusuma. Central Java owns 40.19 percent and the Cilacap district government owns 8.52 percent.
"It's not going to be a quick process, but because this is government-owned land, it would be easier to manage," Sanny said.
Sanny said the relocation project is still in the regional spatial planning stage. The next step will be a feasibility study.
"This can take 6–12 months before [construction] starts. So I don't think the coronavirus pandemic will slow down the process," Sanny said.
Jokowi called Trump last month to discuss Indonesia-US cooperation in fighting the coronavirus pandemic and to strengthen trade and investment partnerships.
Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan had indicated the US company's intention to relocate its factory from China to Indonesia earlier this month.
"The president had asked me to speak to one of Trump's aides," Luhut said on May 10.
Luhut said the project offers strategic values for Indonesia, which still imports the majority of its raw materials for drug manufacturing.
China currently supplies around 60 percent of the raw materials and India supplies 30 percent.
Shinta Kamdani, the deputy chairwoman of the Indonesian Chamber of Commerce and Industry (Kadin), said the US plant's relocation would allow local pharmaceutical companies to make use of its idle capacity.
Shinta said currently Indonesian drugmakers only operate at 55–60 percent capacity due to their heavy reliance on imported raw materials.
Tags: Keywords:Related Articles
Trump Handshake Caps Syrian Leader’s Journey from Anti-US Insurgent to Nascent Mideast Partner
As the leader of a US-designated terror group fighting in Syria's civil war, Ahmad al-Sharaa had a $10 million bounty on his head.Jokowi Eyes PSI Top Post, Jokes About Beating the Odds
Jokowi said he is still making political calculations regarding the possibility of leading the youth-oriented party.‘Anything Can Happen’: Indonesia Should Focus on Domestic Market as US-China Tariff War Cools
As US-China trade war eases, Indonesia should focus on boosting its household consumption, Apindo's chairwoman Shinta Kamdani says.No Breakthroughs Yet in US-China Tariff Talks, But Trump Touts 'Great Progress'
In its editorial, Xinhua said, “Talks should never be a pretext for continued coercion or extortion."Trump Considers Lowering China Tariffs to 80% Ahead of Trade Talks
Trump proposes cutting China tariffs to 80% ahead of key Geneva talks, signaling possible thaw in escalating US-China trade war.Jokowi to Deniers: My Diploma Is Real -- Now Face the Law
Jokowi’s legal team appeared at police headquarters in Jakarta with the diploma, which was hand-delivered by his brother-in-law.Jokowi: Media Has Crucial Role in Sustaining Public Morale
"With 10 years of experience leading the country, he remains a valuable voice of reason," Enggartiasto said of Jokowi.Prabowo Rejects ‘Puppet’ Label, Defends Jokowi Ties as Statesmanship
Prabowo denies being Jokowi's puppet, calling ongoing talks with ex-presidents smart governance, not subservience, amid rising criticism.Trump Says He Will Reopen Alcatraz Prison
In the 29 years it was open, 36 men attempted 14 escapes, according to the FBI. Nearly all were caught or didn’t survive the attempt.Pritzker and Ocasio-Cortez: A Billionaire and A Former Bartender Emerge as Trump Resistance Leaders
Both have urged mass resistance, accused their party of not fighting more, and stood out enough to draw sharp retorts from Trump loyalists.The Latest
Indonesia Plans 2,000-Ton Monthly Rice Exports to Malaysia
Indonesia’s potential to export rice stems from its abundant reserves, now nearly 4 million tons, managed by the State Logistics Agency.Barcelona Clinches Its 28th La Liga Title as Yamal's Stunning Strike Seals Domestic Treble
It completed a domestic double with the Copa del Rey title -- treble if you add the Spanish Super Cup.Rebels Kill Two Police Officers in Papua Motorcycle Ambush
Police blamed the ambush on a separatist group led by Ternus Enumbi, who is believed to be affiliated with the Free Papua Movement (OPM).Other than Indorama’s $2 Billion Deal, Indonesia Lacks Appetite in US Investment
Purwakarta-based company Indorama plans to invest $2 billion in a blue ammonia project in Louisiana.Chris Brown Arrested in UK for Alleged Attack at London Club in 2023
Brown was on a UK tour at the time of the incident. He is scheduled to tour the UK in June and July.Most Popular
