JAKARTA (TheInsiderStories) – Singapore and Government of Indonesia preparing six investment partnership to improve the bilateral relationships between the two countries. The annual bilateral meeting will be held in Singapore this September
Darmin Nasution, Coordinating Minister for Economic Affairs (CMEA), said six working groups prepared to realize the cooperation between Singapore and Indonesia. The working groups are
The Government of Indonesia encouraged the Singapore firms join with local company to develop Batam, Bintan and Karimun, as similar to Kendal Industrial Park, a symbol of Indonesia-Singapore ties for over 50 years.
President Joko Widodo and Prime Minister Lee Hsien Loong, had in August 2016 inaugurated the joint investing project in Kendal Industrial Park, in Central Java, becoming alternative industrial complex for firms in Indonesia, marked by 30 firm that committed to rent and invest around US$360 million (Rp4.78 trillion) and created about 1,700 job in that area.
“In addition, we also find the interest of 41 other firms to join. In the future, it will create around 4,000 total job,” Deputy for International Economic Cooperation Coordination of the Ministry of Economic Affairs Rizal Affandi Lukman told to the reporters on Friday (28/7).
According to Indonesia Investment Coordinating Board data, Singapore is the biggest foreign investor in Indonesia. The investment value from Singapore firms in Indonesia in the H1-2017 reached $1,6 billion with 3,045 projects.
He explained, the construction of Pemalang-Batang and Batang-Semarang toll road plus 2×1000 MW in Batang Regency have lifted prospect of the Kendal industrial park developed by SembCorp Industries Ltd. and Jababeka Group.
Looks like that prospect of the industrial center has been significantly lifted by accelerated development of the trans-Java toll road, especially Pemalang-Batang and Batang-Semarang turnpikes to connect West and Central also East Java.
Given credentials of the developers, Kendal Industrial Park could be the new growth centre in the country. SembCorp, owned by Temasek Holdings, is partner of Salim Group’s Gallant Ventures Ltd in Batamindo Industrial Park (320 hectares), Bintan Industrial Park (270 hectares), and Karimun Marine.
Industrial Complex. SembCorp is also developer of Vietnam Singapore Industrial Park and four other industrial parks in Vietnam with total area over 5,000 hectares. Jababeka, meanwhile, is developer of Jababeka Industrial Estate in Cilegon, Banten province (1,000 Ha), Tanjung Lesung (1,500 Ha), and Jababeka City (5,600 Ha).
Located 21 KM from Ahmad Yani airport and 25 KM from Tanjung Emas Port in Semarang, the capital city of Central Java province, Kendal Industrial Park offers investors good connectivity to major infrastructure.
State-owned port management company PT Pelabuhan Indonesia (Pelindo) III is now expanding warehouse capacity in Tanjung Emas Port from 8,000 hectares to 15,000 hectares. The port also expands its container yard capacity from 640,000 TEUs to 1 million TEUs in two years time.
Kendal’s average minimum wages in 2013 was less than half of Batam and Jakarta, but slightly below Ho Chi Minh and Danang (Vietnam). This makes the industrial estate attractive to labor-intensive industries.
Among companies currently operated in Special Economic Zones (SEZ) are PT APP Timber, PT Tat Wai Industries, PT Praya, and PT Ganda Sugih Arthaboga. PT Tat Wai is subsidiary of Singapore-based Tat Wai, a boutique interior furnishing company. Total development area is 2,700 hectares for industrial, residential, and commercial.
Meanwhile, in energy area, Singapore firms namely Keppel Corp. and Pavillion Energy have completed joint feasibility study with PT Perusahaan Listrik Negara (PLN) Persero, state-owned Indonesia firm to distribute small scale Liquid Natural Gas (LNG) and electricity transmission to Sumatera and Kalimantan area.
(Written by Rahmat Fiansyah, Email: Rahmatfiansyah@gmail.com)