O’Reilly to capitalise on Indonesia as the ‘big secret’ of emerging markets

TONY O’REILLY is being linked with significant investment opportunities in Indonesia and is reportedly interested in taking advantage of what is expected to be one of the world’s fastest-growing economies.

According to the Financial Times, Mr O’Reilly — whose Independent News & Media group buys its newsprint for its Australian operations from recycled paper in Java — is planning to invest in Indonesia’s media and energy sectors.

The newspaper quoted Mr O’Reilly as saying Indonesia was only behind China and India in the list of high-potential emerging markets, calling it the “big secret” of emerging economies.

“There’s going to be more money around, the GNP is going to go up, advertising is going to go up and we’d like a piece of the advertising market,” he was quoted as saying.

Mr O’Reilly was in the Indonesian capital, Jakarta, opening a new factory extension to Waterford Wedgwood’s operations there. The company, of which Mr O’Reilly is the largest shareholder, sources about 30% of its ceramics from Indonesia.

The opening follows Waterford’s recent announcement that more than 300 jobs are to go at its Rosenthal ceramic division in Germany, in a bid to save costs. The group is bracing itself for a 4% fall in sales to about 700 million and “negative” EBITDA for its current financial year, which runs to the end of next month.

Waterford Wedgwood has cut about 2,300 jobs since mid-2005.

Some 490 jobs are under review at its Kilbarry plant in Co Waterford. The group is looking to reduce manufacturing capacity there and outsource production.