Some people easily concluded about Chinese domination in Indonesian infrastructure development simply because Jokowi-Kalla administration awarded the US$5 billion Jakarta-Bandung high-speed train to the world’s second largest economy. As shown by Japan’s domination in energy projects here, however, the third largest economy remains dominant player in Indonesia.
Read MoreCompared to China and South Korea, Japan has stronger presence in Indonesian consumer and property market. Kao Corp and Mandom Corp, for example, are big names to challenge Unilever, P&G, and Johnson & Johnson in personal care and home care market. Eisai and Taisho are substantial players in medicine and health products.
Read MorePresident Joko ‘Jokowi’ Widodo welcomed Japanese Prime Minister Shinzo Abe at Bogor Palace in West Java Sunday (Jan 15). This is their sixth meeting in less than two years, a living proof of strong relationship between the two country, despite the growing influence of China in recent years. Japan, in our view, will continue its domination over China in Indonesia in most sectors of the economy.
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