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TEMPO.CO, Jakarta - After rejecting incentive request from Samsung, the Indonesian government has recently re-approached Samsung on factory establishment matters. According to Industry Minister M. S. Hidayat, if Samsung builds a factory in Indonesia, cellphone imports could be reduced.

¡°I didn¡¯t suggest to grant tax holiday for 30 years, but we should negotiate business without violating the law,¡± he said on Monday.

Hidayat said business negotiation that does complies to the law will make investors comfortable in doing business in Indonesia. The government should not have doubts especially regarding this strategic sector. ¡°We are open for negotiation,¡± he said.

Budi Darmadi, the Industry Ministry¡¯s director general for high-technology priority industries, confirmed that the Indonesian government is approaching the South Korean company. ¡°But the company already has a factory here for electronics. It has even exported its products,¡± he said.

Budi refused to tell what kind of approach implemented by the government and the things being discussed but explained that the governments efforts have generated positive response from Samsung. ¡°We told them that it¡¯s better to have the factory here. No import,¡± he said.

The government previously stated that Samsung had canceled its investment in Indonesia as its tax holiday request was rejected. The government currently restricts tax holiday for 10 years at the maximum while Samsung asks for longer than that.

Samsung has been reportedly interested to build a factory in Vietnam as the country is ready to give tax holiday for 30 years.


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