Firms Lured by East Java’s Infrastructure

East Java has been attracting investments as a result of its good infrastructure. The country’s economy grew more than 7% in last year’s third quarter, with two commercial and four pioneer airports.

Now, ten Korean and Japanese companies are relocating their plants from Southeast Asia to East Java, pulled in by the quality of its infrastructure. The firms deal in labor-based industries including furniture, footwear, industrial waste management and fertilizer.

Chairman of East Java’s Investment Coordinating Board (BKPMD) Warno Harisasono welcomed the newcomers and their plans.

“They earlier had their plants in the Philippines, Thailand and Vietnam,” he said. “Now we will encourage those firms to realize their investment in middle parts of East Java, such as Madiun, Mojokerto, Kertosono and Jombang, as trans-Java toll roads, slated to be built in 2012, will pass through the areas.”

According to government data, foreign investment in East Java reached $4.02 billion last yearly, double the amount listed in 2010.