PT Kawasan Industri Jababeka Tbk (IDX: KIJA) and and Singapore-based Sembcorp Development Ltd, have inked a deal to develop an textile industrial complex within Kendal Industrial Complex (KIC). The textile complex project is 51 percent owned by Jababeka, with the remaining 49 percent is owned by Sembcorp.
According to Jababeka Chairman S.D. Darmono, said that land acquisition of 630 hectares in KIC has been completed at a total cost of Rp400 billion ($29.63 million). Jababeka expects to fully complete the development of the textile complex within 10 years.
Jababeka will set aside around Rp15 trillion in investment to build the textile complex on a 2,700-hectares area. The textile industrial complex will include hospitals, sport centers and housing for workers.
Minister for Industry Airlangga Hartarto in a written statement said, together with the Central Java Provincial Government has drafting the development master plan and strategic plan economic region of Central Java became a special economic zone-based industrial areas.
Airlangga said Presidential Decree No. 3 of 2016 on Accelerating the Implementation of the National Strategic Project, set special industrial zones (SIZ) as a national strategic projects that get the ease of licensing and non-licensing.
“Currently there are 20 companies committed to investing in SIZ, which consists of investors Japan, Malaysia, Singapore, and Indonesia. All 20 companies will provide employment for 4,035 people with a land occupancy of 31 hectares and an investment of Rp4.3 trillion, ” he explained.
Meanwhile, Foreign Minister Retno Marsudi conveyed, in the fields of trade, Singapore is the third largest partner Indonesia with a contribution of more than US$30 billion in 2015. While for investment, Singapore became the number one foreign partner in Indonesia with a value of $5.9 billion through 3012 projects, She said.
On the same occasion, Presiden Direktur of Jababeka Budianto Liman hope the whole region in the first phase will be completed woke up in the next five years. Investments are targeted to reach up to Rp200 trillion and create employment of 500 thousand people.
Sembcorp Development CEO Kelvin Teo adding, a joint Indonesian-Singaporean project will be completed by 2021. The 2,700-hectare park is expected to attract manufacturing companies in industries such as furniture, food processing, building materials and textiles.