Kyocera Leaving Indonesia

May 15, 2005


Kyocera is reported to be closing its electronics parts manufacturing unit in Indonesia, following a pattern set by several other Japanese businesses including Sony, Kanebo and Asahi Kasei which have quit over the past couple of years.

Kyocera started its electronic parts production base at a factory on Batam Island 10 years ago, employing some 500 workers. Now though, because of rising employment costs, Kyocera is said to be transferring production to China.

Japanese companies have expanded into Indonesia over the last two decades but are now said the be leaving because of public order issues, rising wages, frequent regime changes, and a complex tax code among other reasons.

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