Japan may relocate nickel and bauxite processing plants to Indonesia

By Bambang Atmaja

Industry Minister M.S. Hidayat said that Japan business people have in principle agreed to relocate their nickel and bauxite processing plants to Indonesia in response to Indonesian government plan to ban export of raw materials by 2014.

Hidayat said that the plan to relocate its business to Indonesia was stated during his meeting with Japan Rotary Business Club recently in Jakarta.

"They want (to relocate the factories). But there is still problem on unemployment as economic condition is weak in Japan. Relocation means they should close the plants in Japan," Hidayat told Petromindo.com at the State Palace.

He said that a number of business people from China and Korea have also stated their plans of relocating mining products processing plants to Indonesia.

Editing by Adianto P. Simamora