Industry Minister Airlangga Hartarto has expressed hope that Japan-based Mitsubishi Corporation invests further in Indonesia and seeks more partnerships with local industries, saying the giant company has the potential to boost competitiveness and productivity among the country’s manufacturers.

During a meeting with Mitsubishi executives in Tokyo on Wednesday, Airlangga invited the company to pour in more money in the garment sector as Indonesia was revitalizing its textile industry by boosting the production capacity of rayon fiber.

“Rayon has become the new basic material [for textiles] and Indonesia will produce rayon fiber from forest pulp in large quantities,” he said in a statement on Thursday.

Exports of textiles and textile products reached US$11.78 billion in 2016, 8.2 percent of Indonesia’s total shipments.

Meanwhile, investments in textiles and textile products reached Rp 7.54 trillion (US$557.8 million) last year, contributing 1.16 percent to the country’s gross domestic product.

Airlangga said he also expected Mitsubishi to invest more in the petrochemical sector as its subsidiary, Asahi Glass, which operates in Indonesia under the name Asahimas Flat Glass, started to expand its caustic soda and glass factory.

Mitsubishi Corporation senior executive vice president Eiichi Tanabe said the company was looking to expand its business in infrastructure and the automotive sector as well as consumer goods, such as food products, as it partners with Japanese convenience store Lawson and retailer Uniqlo, both of which are popular in Indonesia.

source: thejakartapost.com