JAKARTA (Rambu Energy) – Oil and gas product and equipment producer PT Yokohama Industrial products Manufacture, the Indonesian unit of Japan’s Yokohama, is seeking tax holiday or tax allowance from the government to support its investment in Indonesia, a government official said.
On June 19th 2014, PT Yokohama Industrial Products Manufacturing Indonesia held a ground breaking ceremony to officiate the starting of the construction of the company’s office and manufacturing facilities in Kabil Integrated Industrial Estate/KIIE, Batam, Riau Island.
The constructions of the company’s facilities are expected to be completed by mid of 2015 on 5.1 hectares of land.
The manufacturing plant is intended to produce pneumatic fenders and marine hoses, products required in oil & gas and marine industry.
The company has said that the new plant, which is built for material mixing, molding and vulcanization, will become the second production site after Japan.
“They are still assessing what kind of tax intensive they are looking for. It could be tax holiday or tax allowance,” Director for Investment and Promotion of BP Batam, Purnomo Andi Antono was quoted by state news agency Antara.
The Japanese firm aims to expand their business to Indonesia through Batam Island.
Yokohama said earlier that the demand for marine products made by Yokohama Rubber, such as marine hoses and fenders, used in the handling and transferring of crude oil at sea, is rising steadily along with expanding global demand for petroleum products.
As one of the world’s leading producers of such products, Yokohama is constructing the Indonesian new plant with the aim of increasing its market share as it responds to burgeoning global demand.
Indonesia’s Batam Island was selected as the site for the new plant because it is located just 20 km from Singapore, Asia’s largest hub port, providing superior access to international distribution routes. In addition, the location is expected to enhance cost competitiveness.
Yokohama Rubber currently produces its marine products in Japan. Upon completion, the new plant will provide the marine products group with a two plant production structure that will enable it to expand production by 50 percent. (*)