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Iseki To Move Production To Indonesia

News: Indonesia

Home » News » Regions » Indonesia

2024-08-27

Iseki To Move Production To Indonesia

Akihiro Komuro
JAPAN REPORT
Akihiro Komuro
Akihiro Komuro

Iseki will produce 90% of its products for overseas markets, mainly Europe and the United States, in Indonesia by 2030. The company will gradually transfer the production of tractors and other products for overseas markets that have been handled domestically and will use the consolidation of production as an opportunity to review product design.

In Japan, the market for agricultural machinery is shrinking, and it is difficult to secure human resources. The company will strengthen the position of its production base in Indonesia to expand its overseas business, particularly in Europe and the United States.

The production capacity of the local plant increased to 22,000 units in 2023, a 20% increase over the previous capacity. At present, the production transfer is about 60% complete.

Read More»
Categories: Agricultural, Indonesia, PowerTALK, Production
Office: Japan Office

Indonesia Moves To Reduce Chinese Ownership of Nickel Projects

Akihiro Komuro
INDONESIA REPORT
Akihiro Komuro
Akihiro Komuro

Indonesia is trying to reduce Chinese investment in new nickel mining and smelting operations in order to qualify for U.S. tax incentives. Under the Biden administration’s Inflation-Reduction Act (IRA), large tax incentives will apply after 2025. However, it does not apply to batteries sourced from “foreign entities of concern,” such as companies in which Chinese capital holds more than 25% of the shares, or to EVs that use nickel or other key minerals. Indonesia’s nickel industry will be hit hard by these conditions. This is because the country has been the world’s largest producer of nickel for the past four years, thanks to a large influx of Chinese capital into its mining and smelting operations.

According to three people familiar with the matter, the Indonesian government and the nickel industry are working on new investment projects in which Chinese companies will have a smaller stake. It is possible that the nickel supplied through these deals will be eligible for tax benefits under the IRA. However, in order for the Indonesian nickel industry to receive tax benefits, it will also need to negotiate a trade agreement with the United States. The Indonesian side is proposing an agreement limited to critical minerals.

Read More»
Categories: Batteries, Economics, Financial, Indonesia, PowerTALK, Production
Office: Japan Office
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