"Several cooperation agreements inked by the two countries are in the economic sector, such as in investment, trade, digital economic, and vocational education. This is a follow up of an agreement during last year's Leaders Retreat," Industry Minister Airlangga Hartarto noted in a statement here on Wednesday.
At the 2019 Annual Leaders Meeting in Singapore on Tuesday, President Joko Widodo (Jokowi) and Singapore Prime Minister Lee Hsien Loong discussed the cooperation. Jokowi was accompanied by Hartarto during the meeting.
Hartarto noted that the Indonesian government praised Singapore's investment in the Kendal Industrial Zone (KIK), Central Java’s largest industrial zone and emblematic of the bilateral cooperation between Indonesia and Singapore.
"The integrated zone was inaugurated by Mr President Jokowi and Prime Minister of Singapore Lee Hsien Loon in 2016," Hartarto remarked.
The KIK development is conducted in three stages on a land totaling 2,700 hectares. KIK is an integrated industrial zone supported by seaport, fashion city, and residential areas.
"Several light industries have already been operating. Moreover, we will encourage the development of the components, fashion, footwear, and garment industries," the minister stated.
KIK has been expedited to become a labor-intensive and export-oriented industrial zone.
As of September 2019, investment in KIK was valued at Rp11.4 trillion, with 59 tenants from Singapore, Indonesia, Japan, Taiwan, and Korea, among others.
"Two Chinese industries were also relocated there. This can strengthen the domestic industrial structure. It has created over 6,950 jobs," Hartarto stated.
The government has planned to upgrade the status of KIK into a special economic zone (KEK) to be able to attract investment, reaching Rp70 trillion, within the next five years.
Until 2024, KEK Kendal is expected to exports goods worth US$500 million annually and substitute imports up to $250 million yearly.
Furthermore, Singapore and Indonesia have agreed to the development of Nongsa Digital Park (NDP) in Batam to serve as a base to create industrialists engaged in digital businesses, such as startup, web, application, digital programs, films, and animation.
The project is being coordinated by PT Kinema Systrans Multimedia with cooperation of Infinite Studios.
As of August 2019, the number of tenants and startups in NDP had reached 50 companies, including startups from Singapore, specifically Glints, a talent recruitment start-up, and Fintech firm LiquidPay. Related news: Indonesia, Singapore launch Kendal Industrial Park
Related news: Indonesia to build Batam as a digital industrial park
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