JAKARTA. Shoe manufacturer New Balance will build a new factory in Cirebon with an investment of IDR 1 trillion, which is targeted to start operating in the early third quarter (Q3) of this year.

Bahlil Lahadalia, Minister of Investment/Head of the Investment Coordinating Board (BKPM), claims that the New Balance investment is a success of the Job Creation Law (UU). "When New Balance came in, the question was whether it was true that the Ciptaker Law could be implemented in Indonesia. I'm sure they are right. As soon as I said it was true, they realized it," said Lahadalia.

According to Lahadalia, the New Balance investment is proof that foreign investment has the confidence to invest in Indonesia. “But they really believe in Indonesia's prospects. Then I will check the investment value first, which is definitely above IDR 1 trillion and this is only the first phase," said Lahadalia.

According to idnfinancials.com data, investment realization for the leather goods and footwear industry in the first quarter of this year was recorded at IDR 344.47 billion for Domestic Investment. Meanwhile, foreign direct investment (PMA) for the leather goods and footwear industry in the first quarter was recorded at US$190.21 million.

The number of projects from PMDN investment in the first quarter was 138 projects, while FDI investment was 310 projects. (KR/LM)