Hankook Tire to Invest US$1.1 Bn in Indonesia

Hankook Tire to Invest US$1.1 Bn in Indonesia

"We'll be improving investment gradually up until 2018"

 

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 Hankook Tire Co. Ltd will invest US$1.1 billion to build factories in the country.

"We'll be improving investment gradually up until 2018," said Hankook Tire Executive Vice President, Hyun Bum Chuo, in Jakarta, Jan 20.

Hyum Bum said the factories will need around 4,000 local workers.

Chief of the Capital Investment Coordinating Agency, Gita Wirjawan, said the investment will open 100 thousand jobs.

The first phase of investment will require US$353 million aiming at at tire factory in Bekasi, West Java.

The factories will help Hankook transform into the fifth top tire manufacturer worldwide. "Hankook Tire chooses Indonesia as a base for global production," said Hankook Tire Vice Chairman and CEO, Seung Hwa Suh. Hankook figured the tire production will hit 100 million items.

The developer will begin construction by Q3 of 2011 and is expected to complete by September 2014.

India Ready to Invest US$15 Bn in Indonesia

India Ready to Invest US$15 Bn in Indonesia

Most of the fund will be set aside for other infrastructure projects.

 

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Indian investors are expected to chip in US$15 billion of investment to Indonesia. The fund is part of the deal that Susilo Bambang Yudhoyono will sign by late January 2011.

"We're not talking about the realization in the first place," said Coordinating Minister for the Economy, Hatta Rajasa, today, Jan 20.

According to Hatta, the investment will be allocated to develop railway system in South Sumatera worth around US$1.5 billion to US$2 billion. Most of the fund will be set aside for other infrastructure projects.

Industry Minister MS Hidayat said the cooperation between Indonesia and India will be carried out through business-to-business and government-to-government schemes.

The Ministry of Industry will also sign a deal with Primex to gain more benefit from ironsand.