Alya Nurbaiti, Jakarta – Garment company PT Sejin Fashion Indonesia, a subsidiary of South Korean footwear manufacturer Parkland Co., Ltd., has made the decision to relocate its production base from China to Indonesia, a top official said on Saturday.
The plan was confirmed following a visit to South Korea by Investment Coordinating Board (BKPM) head Bahlil Lahadalia and State-Owned Enterprises Minister Erick Thohir on Wednesday and Thursday.
"One more company is going to relocate from China to Indonesia. It's a labor-intensive industry, it could add up to 4,000 new jobs. Hopefully, it will help the economy during this COVID-19 crisis," Bahlil said in a written statement on Saturday, adding that Sejin would also increase foreign exchange as it exported its products.
Sejin plans to relocate its factory from Dalian city in China to Pati regency in Central Java. The company's total investment value is estimated at US$35 million.
The company is expecting support from the Indonesian government in the form of a survey on non-new capital goods (BMTB) machines to be relocated from factories in China, the establishment of an industrial zone, a permit on bringing in expert foreign workers during the pandemic and eligibility for a tax allowance scheme.
Bahlil further said the government had accepted Sejin's application on tax incentives.
Parkland CEO Myeong-gyu Park expressed optimism that Sejin would thrive in Indonesia, just as Parkland did for the past 15 years.
The Busan-based company established its local company, PT Parkland World Indonesia, in 2005 and has since produced footwear for brands such as Adidas, New Balance and Reebok. It has factories in Serang in Banten and Jepara, Rembang and Pati in Central Java.
Sejin director Ho-jung Park said he appreciated the BPKM's quick response to the investment. "We are greatly helped by all the support given. We will do our best so that we can immediately realize our investment in Indonesia," Park said.