New Balance Adds Investment to Expand Indonesian Operations

Jakarta. Sportswear giant New Balance announced on Monday the plan to expand its Indonesian operations by sourcing products to a seventh factory located in the West Java town of Cirebon.

The new factory is expected to begin production in August.

An Indonesian government official said the new investment is valued at more than Rp1 trillion ($67.9 million).

New Balance Country Manager Elmore Simorangkir said the company has made Rp 2 trillion in direct investment since it came to Indonesia and is committed to adding more, getting convinced by the stable political situation, improved infrastructure, and favorable regulatory regime in the country.

Elmore admitted that the decision to expand operations was made after the Indonesian government introduced the job creation law which eases investment and business procedures.

"We are witnessing that under the leadership of Mr. Jokowi [President Joko Widodo], Indonesia is growing very rapidly. New Balance has long considered expanding operations in Indonesia but only recently did we make the decision after the adoption of the job creation law that in our opinion offers incentives to investments," he told reporters in Jakarta.