VIVAnews - Japanese electronic producer Sanyo Electric Co Ltd, through PT Sanyo Jaya Component Indonesia will be expanding the optical pick up factory in Bekasi. The total amount of money, which will be invested in 2011, is US$ 80 million.
Trade Ministry’s Electronic Industry of Transportation and Telecommunication Directorate General Director Syarif Hidayat said Sanyo has been investing on optical pick up since 2008.
Optical pick up is the main component of optical disc drive such as blue-ray disc recorder, DVD players and computers’ CD/DVD drive. Until 2009, Sanyo has invested US$ 38 million on the sector. This year, the company has increased the amount to US$ 60 million.
“In 2011, the investment will again be raised to US$ 80 million. All of Sanyo’s investments are based on high technology,” Hidayat said in Jakarta on Thursday, January 21.
Senior Vice President of Sanyo Electric Corporation Ltd Takeda Kazuhiro said Sanyo Indonesia had three main productions, which are Poscap (polymerized organic semiconductor capacitor), optical pick up and digital cameras (digital still camera/ DSC).
“The factory, which was inaugurated today, could produce about 3 million units of optical pick up for DVDs per month,” Kazuhiro said.
He also said the investment on the factory with the capacity of 24 million units per year, will be progressively increased up to four times in 2012.
Meanwhile, Hidayat added that the production of Sanyo Jaya Component Indonesia will be entirely allocated to exports. According to him, high-level electronic product demand in the global market is escalating.
“Sanyo is determined to take on the Asian market. That’s why Indonesia was chosen to be the base of export production to the Philippines, Japan and other countries. Until now, the number of Sanyo Jaya Component Indonesia has gone up from 5000 people to 9000 people,” he said.
Industry Minister MS Hidayat said SJC Indonesia had become the only high-tech electronic company that absorbs a lot of labors.
“High-tech-based company doesn’t usually hire high number of labors. To Indonesia, it’s such a benefit,” the Minister said.
He also assumes Sanyo’s investment could lead to technology transfer which will support the process of infrastructure upgrade in electronic industry.
“Sanyo is eyeing Indonesia because geographically, the country is really strategic. In addition, Indonesian human resources are quick to adjust because most of them are talented,” Hidayat said.
However, Industry Ministry expects Sanyo to increase the local content of its products. Until now, the level of local content adopted by Sanyo is only 5 percent.
“The government finds it acceptable because Sanyo’s investment on high-tech products in Indonesia is relatively new. In the future, the portion of the local content could go up to 40 percent minimal. It is possible with technology transfer,” Hidayat said.
He went on by saying that investment in high-tech manufacture sector has been proposed to receive tax facilities in 2010. Governmental Decree No 62 / 2008 on Tax Incentives for Investments in Certain Sectors and Regions has not been able to accommodate the industry sector.
“During the 2010 revision, the Industry Ministry suggested high-tech manufacture investments to be given income tax facility. Right now, the investments have not been facilitated,” he said.
Kazuhiro pointed out that since December 2009, Sanyo Electric has become a part of Panasonic Group after Panasonic purchased Sanyo’s shares through an over bid /TOB. But, in every transaction, Sanyo’s trademark is retained.
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Translated by: Nataya Ermanti
