Ministry offers 12,500 ha for industrial estate development

Ministry offers 12,500 ha for industrial estate development

Director general of resilience, regional and international industrial access of the Industry Ministry, Dody Widodo (left); the ministry's secretary general, Achmad Sigit Dwiwahjono (center); and, Industry Minister Agus Gumiwang Kartasasmita (right) inspected the Batang industrial estate in Central Java recently. (ANTARA/HO-Industry Ministry) 

Jakarta (ANTARA) - The Indonesian Industry Ministry has offered to prepare 12,500 hectares of integrated industrial estates (KITs) with supporting infrastructure for investors.

“Currently, we have some 12,500 hectares of land for industrial estates (that can be) offered to investors. We are ready to facilitate (investors) as they also have network and specific consideration to support their supply chain," the director general of resilience, regional and international industrial access of the Industry Ministry, Dody Widodo, said in a statement here on Tuesday.

In its medium-term national development plan (RPJMN) 2020-2024, the government has proposed the development of 27 new industrial estates.

The Industry Ministry is currently making a map of industrial estates managed by state-owned companies, including the Batang industrial estate, which is managed by PT Perkebunan Nusantara III, and preparing them to accommodate plants relocating from China.

According to Widodo, investors are finding industrial estates on the north coast of Java more attractive due to faster loading and unloading procedures for export and import shipments.

"In general, relocation can be directed to all estates in Central Java and East Java. Moreover, these two provinces are included in the acceleration plan for economic development, as stipulated in Presidential Regulation No.79 and 80/2019," he said.

The government has intensively promoted the 4,368-hectare industrial estate in Batang to investors planning to relocate their factories from China and some Southeast Asian countries.

Investment in KIT Batang is expected to reach US$850 million in the first phase, and has the potential to absorb 30 thousand workers. The development of KIT Batang is expected to improve its competitiveness in Southeast Asia.

In addition to KIT Batang, the government has proposed that five other estates be included in the list of National Strategic Projects in 2020-2024.

They include one estate each in Brebes district of Central Java, Takalar in South Sulawesi, Tanjung Enim in South Sumatra, and two potential estates in North Maluku, namely Weda Bay and Obi Island.

Chairman of the Association of Indonesia Industrial Estates (HKI), Sanny Iskandar, said industrial centers in Java Island are more attractive to investors compared to other regions because they offer ready infrastructure.

Of the 96 industrial estates registered with HKI, more than half are located on Java Island, he informed.

"The largest number (of estates) is in West Java, covering 27 areas. Nationwide, there are 70 estates under the HKI which are ready to accept industry relocation,” he added.  

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