Ten Japanese and Korean firms will relocate their plants from neighboring countries in Southeast Asia to Indonesia's East Java province this year, thanks mainly to the province's good infrastructure, a local official was quoted by Jakarta Post as saying on Monday.
East Java Investment Coordinating Board (BKPMD) chairman Warno Harisasono welcomed the relocation plan as those firms operated in labor-intensive industries such as footwear, furniture, fertilizer and industrial waste management.
"They earlier had their plants in the Philippines, Thailand and Vietnam. Now we will encourage those firms to realize their investment in middle parts of East Java, such as regencies of Madiun, Mojokerto, Kertosono and Jombang, as trans-Java toll roads, slated to be built in 2012, will pass through the areas," he said.
East Java, which registered economic growth of more than 7 percent in the third quarter of last year, is fully aware of the importance of good infrastructure in luring investments, the paper said.