French Companies to Invest In Indonesia
Thursday, 15 June, 2006 | 18:06 WIB

TEMPO Interactive, Jakarta: Seven garment companies from France will invest US$15 million in Indonesia in September this year.

The companies will build factories in Bandung (West Java) and Semarang (Central Java).

Alain Pieereminynon, Head of the Indonesian French Chamber of Commerce and Industry (IFCCI), explained that the arrival of these seven companies reflects the trust of France in the improvement of business climate in Indonesia.

According to him, the companies are aiming at factory locations in Bandung and Semarang because the Regional Minimum Wage (UMR) level sin those areas are more competitive compared to others.

Alain said the interest of businesspeople from France to invest in the textile sector has not lessened despite the garment industry in Indonesia still being at its worst.

“The bad condition of the textile industry was caused by inadequate marketing up until now,” he said.

To help overcome marketing constraint, Alain said, the French Chamber of Commerce and Industry will hold an Indonesian products solo exhibition in three cities in France in the mid of this year.

“We are selecting the top products to be exhibited.”

Fery Firmansyah