Foreign direct investment (FDI) is attracted by the implementation of the domestic content level (TKDN) program. In this case, a French bitumen roof manufacturer is starting the construction of a factory in the Pasuruan Industrial Estate, East Java. This step is expected to advance the property industry and attract investment in the country. Esther Pane, Director of PT Onduline Indonesia, states that this investment is a step towards increasing the domestic content level of building components. With an average annual sales of 2.5 million square meters of roofing, and an average growth rate of up to 20%, Esther acknowledges the challenge of meeting the demand due to limited supply from Malaysia.
The construction project on a 1.2-hectare land in Pasuruan is expected to be operational in the second quarter of 2024, according to Rama Krishnan, Director of PT Onduline Manufaktur Indonesia. Initially, the production process in Pasuruan will still rely on semi-finished goods imported from Malaysia. With the establishment of the factory in Pasuruan, the domestic content level of the roofing product is expected to reach 50%. The company aims for an initial capacity of 2.52 million square meters, with the potential for further expansion to 3 million square meters in the coming years. The only reason for not producing the entire product in Indonesia is the difficulty in sourcing bitumen raw materials.
