Thursday, June 1, 2023

US Pharma Company to Relocate Plant to Central Java From China

Leonard A.L. Cahyoputra
May 18, 2020 | 1:37 pm
President Joko 'Jokowi' Widodo attends a virtual meeting with other Asean leaders from Bogor Palace in West Java on Tuesday. (Antara Photo/Press Bureau)
President Joko 'Jokowi' Widodo attends a virtual meeting with other Asean leaders from Bogor Palace in West Java on Tuesday. (Antara Photo/Press Bureau)

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:


Business 3 hours ago

EU Should Recognize ISPO, MSPO-Certified Palm Oil: Indonesia

Palm oil-producing countries Indonesia and Malaysia recently sent a joint mission to Brussels to fight back against EU's deforestation law.
Lifestyle 8 hours ago

Jordan's Future King, Saudi Bride to Tie the Knot 

The union of Crown Prince Hussein, 28, and Rajwa Alseif, 29, may even help Jordan forge a strategic bond with oil-rich Saudi Arabia.
Business 10 hours ago

Looming Bauxite Export Ban Not Well-Thought-Out: Think Tank

Indonesia may be far from ready once the bauxite export ban enters into force, according to Indef.
Opinion 18 hours ago

How US Debt Affects the Indonesian Economy?

In Indonesia, a weaker US dollar can lead to inflation and higher import costs, as many goods are priced in US dollars. 
Business 24 hours ago

Business Newspaper Investor Daily Launches New Look

The introduction of the new look reflects the new spirit of the management to bring the paper closer to its loyal readers.

Popular Tag

Opini Title