South Korean Garment Company Factory Relocation from China to Starch Page all

JAKARTA, KOMPAS.com – One company of origin South Korea (South Korea) will certainly relocate its factory from Dalian, People’s Republic China to Pati, Central Java, with an estimated total investment value of US $ 35 million.

Reporting from Among, Sunday (26/9/2020), the certainty of relocation was the result of the visit of the Head of the Investment Coordinating Board ( BKPM) Bahlil Lahadalia and Minister of State-Owned Enterprises (BUMN) Erick Thohir to South Korea on September 23-24, 2020.

The visit to South Korea was carried out to follow up a number of investment plans for the company from the Ginseng Country in Indonesia.

“This is good news. In accordance with the President’s direction, we are asked to continue to actively pursue companies that have relocated their business from China and several other countries. After yesterday’s visit to Korea, another company will relocate to Indonesia from China,” said Bahlil.

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“This is a labor-intensive industry, it can add up to 4,000 new jobs. We hope it can help the economy in a pandemic like this,” said Bahlil again.

PT Sejin Fashion Indonesia, which will relocate its investment, is a company engaged in the industrial sector garment export oriented.

Sejin is a subsidiary of Parkland Co., Ltd. which has been investing in Indonesia for 15 years in the footwear industry.

In addition to increasing employment, PT Sejin Fashion Indonesia’s investment will also increase the country’s foreign exchange because 100 percent of its production will be exported.

Therefore, the company asked for support from the Indonesian government in order to accelerate the relocation process to Indonesia so that it can operate immediately.

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Some of the support that is expected is related to the acceleration of the technical inspection process (survey) of Non-New Capital Goods (BMTB) machines that will be relocated from factories in China.

Then the application for the designation of factory location as Bonded Area (Entrepreneur in Bonded Area / PDKB), support in bringing in Foreign Workers (TKA) members during the Covid-19 pandemic, as well as facilitating the application of tax allowance incentive applications.

“In accordance with BKPM’s commitment, investors will continue to be facilitated and guarded. Some of the company’s requests have been facilitated. During this visit I simultaneously conveyed the approval of the tax allowance incentives that Sejin requested,” said Bahlil.

“It’s done. Regarding the licensing that is still in process, there is already a Special Team to take care of it. The company is just waiting to be done,” Bahlil explained.

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The approval of PT Sejin Fashion Indonesia’s tax allowance incentives is the first tax allowance that BKPM has issued, since the delegation of authority from the Indonesian Ministry of Finance. BKPM will continue to encourage Sejin to meet the commercial production target in the fourth quarter of 2020.

Parkland CEO Myeong-gyu Park is optimistic that their subsidiary can develop well in Indonesia. Parkland’s business activities in Indonesia have shown satisfactory results. That is why the company relocated its factories to Indonesia.

“We would like to express our deepest gratitude to the Head of BKPM and the team who have helped us in relocating investment to Indonesia,” said Myeong-gyu Park.

“We are increasingly confident and confident, our investment can grow well in Indonesia. This is of course also because of the support of the South Korean Government and the Indonesian Government, especially the BKPM,” he added.

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On the same occasion, President Director of PT Sejin Fashion Indonesia Ho-jung Park expressed his high appreciation for all facilitation made by BKPM for their application for investment support in Indonesia.

“I am quite surprised by the quick response from the Head of BKPM and the team. We are greatly helped by all the support given. We will do our best so that we can immediately realize our investment in Indonesia. Thank you,” said Ho-jung Park.

Parkland Co., Ltd. is a South Korean company that was founded in 1973 in Busan, South Korea. One of Parkland’s investments in Indonesia, is PT Parkland World Indonesia, which has had several factories in Indonesia since 2005.

Its production facilities are scattered, among others, in Serang-Banten, Jepara, Rembang, and Pati. The company produces sports footwear / shoes for the New Balance, Adidas, Reebok, and others brands.

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