A survey conducted by the Japan External Trade Organization (JETRO) has revealed that 49.5 percent of Japanese companies operating in Indonesia express their intention to expand their businesses. 

The survey, titled "Business Conditions of Japanese Companies in 2023," reveals a positive outlook for the Indonesian market, with many companies citing increased demand from the domestic market as a key driver for expansion.

Febri Hendri Antoni Arif, the spokesperson for the Ministry of Industry, stated in Jakarta on Monday that with the positive business environment in Indonesia, approximately half of the surveyed Japanese companies express their desire to expand their businesses within the next one to two years. 

This optimism contrasts with the situation in China, where expansion rates have been declining during the same period.

The survey also indicates that 42.1 percent of Japanese companies in Indonesia expect an increase in operational profits in 2023 compared to the previous year, reflecting growing confidence in the Indonesian market. Only about 4.2 percent of respondent companies expressed plans to reduce capacity or relocate operations to other countries.

Febri emphasized that the primary reason for business expansion among Japanese companies is the growing demand from the domestic market. He highlighted several factors that make Indonesia an attractive destination for business, including market size, growth potential, low labor costs, ease of recruiting local staff, presence of local industry clusters formed by client companies, as well as political and social stability.

Furthermore, Febri noted that the transition towards Industry 4.0 is a priority for Japanese companies in Indonesia, with approximately 30 percent of surveyed companies already implementing automation in production, and 70 percent expressing interest in doing so.

Takahashi Masakazu, President Director of JETRO Jakarta, explained that the survey aims to understand the current business activities of Japanese companies in Asia and Oceania. 

Additionally, JETRO conducts various activities to support Japanese businesses in Indonesia, such as organizing seminars on Domestic Component Level (TKDN) certification in collaboration with PT. Sucofindo.

"The main focus of these activities is to provide explanations on TKDN calculation concepts and Company Benefit Weights (BMP) to companies to help them improve the TKDN value of their products," Takahashi said. 

The survey results and ongoing support initiatives underscore the strong partnership between Japanese companies and Indonesia's business ecosystem, fostering mutual growth and development.