Turkish Industrial Companies Eye Investment Opportunities in Indonesia

Jakarta, INTI – Investment opportunities in Indonesia, with its array of advantages and facilities, are attracting the attention of various Turkish industrial companies. During his visit to Ankara and Istanbul on June 4-5, 2024, Minister of Industry Agus Gumiwang Kartasasmita met with several leaders of Turkish industrial companies that have already invested in Indonesia. These companies span industries such as tire manufacturing, textiles, electronics, and seafood processing.

From 2019 to 2023, Turkey's total investment in Indonesia reached USD 42.758 million, placing Turkey 43rd among countries investing in Indonesia. "We see this situation as a significant opportunity for Turkish companies to expand their businesses in Indonesia. Therefore, during our recent visit, we encouraged Turkish companies to broaden their operations," said the Minister of Industry in Jakarta on Friday (7/6).

Strengthening Ties with Turkish Companies

Minister Agus Gumiwang met with Fatih Kemal Ebiçlioğlu, President of Consumer Durables at Arcelik, a leading Turkish household appliance company and the world's second-largest in this sector. In Indonesia, Arcelik partners with Hitachi to produce washing machines at a factory in Karawang, West Java. The company also plans to expand its production capacity in Indonesia by establishing a new factory for air conditioners and refrigerators in Semarang.

Meanwhile, Koc Holding, Arcelik's parent company, has engaged in acquisitions and joint ventures with various partners, including Hitachi for the Asia-Pacific market, to enhance its operations. "We invite Arcelik to explore new cooperation opportunities with Indonesian electronics companies such as Polytron," the Minister added.

Exploring Textile and Tire Manufacturing Opportunities

In a meeting with Kordsa CEO İbrahim Özgür Yıldırım, Minister Agus discussed collaboration opportunities in tire products and the textile industry. Kordsa's investment in Indonesia totals USD 21 million, with facilities in Bogor producing nylon, yarn, and other rubber industrial products for export.

Kordsa highlighted competition from China and Vietnam in the North American market. In response, the Minister noted that the Indonesian government offers incentives such as a super tax deduction of up to 300%, which Indokordsa (Kordsa's Indonesian subsidiary) can apply for. Other incentives will be discussed further.

"The industrial policy in Indonesia focuses on increasing added value and integrating Indonesia's industrial sector into the global supply chain. This policy also aims to protect foreign investments in Indonesia, particularly in the manufacturing sector," explained Minister Agus.

Expanding Product Lines

The government welcomes Kordsa's interest in developing new products in Indonesia beyond their current offerings. Potential new products include composite concentrates, vehicle airbags, and composite fibers for building reinforcement.

"We support these plans, and further technical discussions will take place in subsequent meetings," the Minister concluded.