US pharma firms think twice about relocating to Indonesia: Experts

The fact that Indonesia ranked 73rd on the World Bank’s ease of doing business index, last updated in October 2019, also discourages investors, as neighboring Malaysia and Thailand fare better in 12th and 21st position, respectively. “I think it’s quite challenging for corporations to quickly move their operations to Indonesia if we don’t improve our regulatory [environment]. While Trump could encourage companies to relocate their facilities, in the end it’s the companies that make the decision,” Center for Indonesian Policy Studies (CIPS) researcher Andre Surianta told the Post. For the pharmaceutical industry, Andre said, a major factor that dissuaded investors were regulations mandating the use of locally-sourced raw materials.“We are unable to provide raw materials for the pharmaceutical industry because we don’t have the supply chain. I think we should relax the regulation on local content if we want to see the industry come in,” he said.Indonesian workers’ low productivity is another major challenge for the government as it seeks to attract investors.According to a survey conducted by the Japan External Trade Organization (JETRO), Indonesia’s manufacturing plants’ productivity only scored 74.4 on an index where the respondents’ Japanese companies’ productivity defines 100.Indonesia’s score is lower than those of the Philippines, Singapore, Thailand and Vietnam at 86.3, 82.7, 80.1 and 80.0, respectively.The survey also shows that more than half of the Japanese companies are not satisfied with the minimum wage compared to the worker’s productivity.“Even though the pharmaceutical industry is a capital-intensive investment, which makes workers’ productivity less [impactful], investors still list our human capital as one of their greatest concerns,” Andre said.“Human capital development should be our long-term priority if we want to increase our attractiveness to foreign investors.”He also said that industrial zones with sufficient infrastructure and accessibility were not easy to find in Indonesia, which could make investors opt for other countries.Brebes regency’s development planning head Edy Kusmartono acknowledged that the local administration had heard about the potential relocation, even though there had been no formal notification from the central government so far.“We have 3,975 ha of land in the KIB and manpower of 20,000 people who are ready to work inside the KIB. If [the central government and investors] are interested, they could set up the industry here,” Edy told Kompas  daily newspaper on May 11.He further said that the KIB was still waiting for its masterplan that was being formed by the zone’s developer PT Kawasan Industri Wijayakusuma, which includes the business scheme, consortium appointment and land acquisition, before starting its physical construction.Topics : “President Jokowi [Joko Widodo] has been frequently discussing the [pharmaceutical industry] relocation with President Trump,” Luhut said. He added that 90 percent of pharmaceutical product compounds were still unavailable in the country and needed to be imported.Indonesian Pharmaceutical Association (GP Farmasi) chairman Tirto Koesnandi said an unsupportive regulatory framework and high wages could deter investors from setting up operations in the country.”Our investment climate is still unattractive for future investors, including US pharmaceutical companies. Wages are still too high, and there are many regulations that make investment unattractive,” Tirto told The Jakarta Post on Tuesday.Statements issued by the US State Department in 2019 noted that legal uncertainty, economic nationalism and restrictions to imports and exports were some of the factors that made investing in Indonesia challenging. Indonesia’s infamous red tape could dissuade investment from US pharmaceutical companies looking to relocate from China, experts say.The Indonesian government is in talks over the possibility of offering US-controlled pharmaceutical firms that wish to move factories out of China a new production base, according to Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan.“President [Donald] Trump is currently at odds with his Chinese counterparts, and he wants to relocate industries out of China,” Luhut said during an interview with state broadcaster RRI on May 9. The government is now preparing a 4,000-hectare special economic zone for the industry in the Brebes industrial zone (KIB) in Central Java. read more

Swans are up for fight – Monk

first_img The Swans head to Everton on Saturday, standing just four points above the drop zone. They have not posted a league win since beating Cardiff almost six weeks ago, with last Saturday’s 2-1 home defeat against West Brom leaving them still within striking distance of the bottom three clubs. Press Association Swansea head coach Garry Monk says he has no question marks over his players as they prepare for what could be a Barclays Premier League relegation dog fight. “The good thing for us is it’s in our hands,” Monk said. “We are not chasing to try and make up points. It is upon us to make sure we fight for every single point. “I have got no question marks over the players. They all want to do well. Their attitude has been spot on. “At the end of the day, they realise what is at stake. When you get questioned, you tend to get a reaction. “Everyone always talks about the 40-point (safety) mark, but a lot of the teams have to play each other. A lot will drop points and a lot will get points. “The reaction this week has been very good. You have to be honest with people. I told them straight after the game (against West Brom) what I felt. They are all in it together and pushing each other. “I am more than confident that in the coming games we will earn enough points to achieve what we want to achieve.” Swansea were boosted against West Brom by Spanish striker Michu’s return off the bench following a 17-game injury absence, and his record as a proven top-flight goalscorer could ultimately be a decisive factor in steering his club to safety. “He hasn’t had a lot of game time,” Monk added. “It is about building him up, really. Whether he starts or not on the weekend, we haven’t decided. “It is unfair to put too much pressure on him. Of course, he has got the quality to score goals for us, and he is a very important player with the quality he has got, but it is important we don’t rush him.” Jonjo Shelvey and Nathan Dyer are set to join Michu in being part of the squad for Goodison Park. Shelvey has been out for almost a month with hamstring trouble, while Dyer missed the West Brom game due to a heel injury. Swansea, who were knocked out of the FA Cup by Everton earlier this season, have never beaten the Merseyside club, and Saturday’s clash sees a quickfire return appointment with their former manager Roberto Martinez. “They are very strong at home,” Monk said. “They are pushing well in the league. We played them in the cup not long ago, and for 60 minutes our gameplan worked very well. “We realise how hard it will be, but we will go up there with a determination to try and get a reaction from last weekend. “Roberto is a good manager. From his time here, you could tell he was always going to go on and do some good things in football. He has got his chance now at Everton, and he has taken it very well.” last_img read more

Hotshots slip past Fuel Masters for third straight win

first_imgSteam emission over Taal’s main crater ‘steady’ for past 24 hours “It was all about mental toughness to win, perseverance and desire in the end,” said Magnolia coach Chito Victolero. “We knew Phoenix will bounce back after their loss and we expected this kind of game.”Rafi Reavis was instrumental in just his second game back from injury as he wound up with 11 points, all of which came in the final frame, 11 rebounds and three blocks for Magnolia, which climbed to 4-1 just half a game behind idle league-leader San Miguel Beer in the standings.FEATURED STORIESSPORTSTim Cone, Ginebra set their sights on elusive All-Filipino crownSPORTSGinebra beats Meralco again to capture PBA Governors’ Cup titleSPORTSAfter winning title, time for LA Tenorio to give back to Batangas folkReavis was at the right place at the right time for the game-sealing basket after picking up Paul Lee’s air ball and laying it in for a 95-91 lead with only 12.8 seconds left.The Hotshots held the Fuel Masters, who blew a 10-point lead in the fourth quarter, to without a field goal in the final three minutes. Lee led all scorers with 20 points while Ian Sangalang added 16 points and seven rebounds for Magnolia, which out-rebounded Phoenix, 55-39, thanks to Marc Pingris’ game-high 17 boards.Sangalang put his team ahead, 91-89, with a jumper from the free throw line with 1:05 remaining before Lee made it a four-point game, 93-89, with 42.1 ticks to go.Magnolia also drew a stellar showing from Rome dela Rosa, who contributed 17 points and four rebounds.Gelo Alolino had 19 points while Matthew Wright scored 17 for the Fuel Masters, who slipped to 2-3 after suffering their second setback in a row.ADVERTISEMENT MOST READ OSG plea to revoke ABS-CBN franchise ’a duplicitous move’ – Lacson Lights inside SMX hall flicker as Duterte rants vs Ayala, Pangilinan anew View comments LATEST STORIES Camson willing to apologize to Almazan, says elbow wasn’t intentional Nonito Donaire vs Naoya Inoue is BWAA 2019 Fight of the Year Michael Porter Jr. stays patient as playing time increases Almazan vows to comeback stronger after finals heartbreak OSG plea to revoke ABS-CBN franchise ’a duplicitous move’ – Lacson Sports Related Videospowered by AdSparcRead Next Newsome sets focus on helping Bolts open new PBA season on right track Jiro Manio arrested for stabbing man in Marikina Carpio hits red carpet treatment for China Coast Guard PLAY LIST 02:14Carpio hits red carpet treatment for China Coast Guard02:56NCRPO pledges to donate P3.5 million to victims of Taal eruption00:56Heavy rain brings some relief in Australia02:37Calm moments allow Taal folks some respite03:23Negosyo sa Tagaytay City, bagsak sa pag-aalboroto ng Bulkang Taal01:13Christian Standhardinger wins PBA Best Player award Don’t miss out on the latest news and information. PBA IMAGESMagnolia used a late run to escape Phoenix, 97-91, and keep its winning streak going in the 2018 PBA Philippine Cup Saturday night at Cuneta Astrodome.The Hotshots closed the game on a 13-2 in the last 3:01 to erase an 89-84 deficit and chalk up their third consecutive victory.ADVERTISEMENTlast_img read more