ASIATODAY.ID, JAKARTA – Deputy Minister of Industry of Indonesia, Faisol Riza, asked industrial area managers in the Batam Special Economic Zone to be prepared to seize opportunities if there is a factory relocation from China to Indonesia, following the election of Donald Trump as President of the United States.
He conveyed this during a dialogue with industrial area managers in the Batamindo Industrial Area, Batam City, Riau Islands, on Friday, January 17 2025.
At least, there are 19 industrial areas that are possible destinations for relocation of factories from China.
According to Faisol, Indonesia has a great opportunity to become a relocation destination when President Trump plans to set new import tariff barriers for all products originating from China.
“This is perceived by business actors in China as an obstacle to exporting directly from China to the US. They are looking at the possibility of new locations, especially in the ASEAN region, and are relocating their factories so they can directly export from production countries,” said Faisol.
Faisol said that Indonesia is seen as a country that has economic stability, as well as a strategic location as a destination for investment or factory relocation. Moreover, various industrial areas in the Batam Special Economic Zone are quite ready if the relocation trend occurs.
“There are several sectors that have the intention to relocate. Therefore, preparations from each industrial area are very important. Apart from electronics, there are also textiles, footwear and automotive which apparently see that it is increasingly difficult to export opportunities from China directly to US,” he said. (AT Network)
Follow Us at Google News and WA Channel