"The value of the KIK development in the first stage is estimated to reach Rp7 trillion with a total land area of 860 hectares. Its development is expected to be finished in five years," Industry Minister Airlangga Hartarto said in a written statement made available in Jakarta on Tuesday.
The minister made the remarks in Semarang, Central Java, after inaugurating the KIK Park by the Bay on Monday.
The KIK development is scheduled to be carried out in three stages on a site covering a total land area of 2,700 hectares. It is an integrated industrial area supported by an industrial zone, a port, a fashion city and resettlement.
"The KIK area is also designed as a labor intensive industry site having business with export orientation, "Airlangga said. Over the past one year, 20 investors have made investments in the area with a combined investment of Rp4.3 trillion and absorption of 4 thousand workers.
Singaporean company PT Tat Wai Indusries has been in operation in the KIK area since last August. It developed a factory of 10 thousand square meters on the site with an investment of Rp65 billion. It produces furniture such as desks, chairs and cupboards.
Now, the company has employed 75 workers of which 80 percent are local workers from Kendal.
According to Airlangga, the development of the KIK project started eight years ago. The planning was prepared by the Ministry of Industry in cooperation with provincial government and the Kendal regional administration. It was an effort to accelerate equitable national industrial and economic developments.
President Joko Widodo, along with Singapores Prime Minister Lee Hsien Long, launched the Kendal Industrial Park on Monday as a new model of bilateral economic relationship.
"Lee and I agreed that the investment cooperation in Kendal Industrial Park marks a new milestone in our bilateral relationship, particularly in the investment sector," Jokowi said in a joint press statement in Semarang, Central Java, on Monday.
Both heads of state also discussed the potential for more such bilateral investments, as Jokowi believed there was a big opportunity to further develop this economic cooperation.
The president also stated that Indonesia was committed to improve its competitiveness to become an investment destination country.
"During discussions, I explained that we are continuously reforming the economic and legal sectors to improve Indonesias economic competitiveness," Jokowi added.
Jokowi reminded that both Indonesia and Singapore are also enhancing cooperation in the tourism sector by developing new tourism destinations in Indonesia.
Indonesia hopes that a range of Memorandums of Understanding (MoU) that have been signed would lead to more effective cooperation in the tourism sector.
Jokowi noted that Singapore also supports Indonesia on several regional and international issues such as counter-terrorism measures, as well as in the South China Sea dispute.
"Singapore is an important partner of Indonesia in many sectors. Indonesia and Singapore will also celebrate the 50th year of their diplomatic relationship," Jokowi noted.
A project being built in Central Java through bilateral cooperation will create about 4 thousand jobs.
Lee underlined that many Singapore companies have been investing in Indonesia not only in the free trade areas of Batam-Bintan-Karimun (BBK) in Riau Islands but also in other areas of the country.(*)