JAKARTA (TheInsiderStories) – Indonesia’s Minister of Industry Airlangga Hartarto invited Singapore investors to invest more in the Kendal Industrial Park (KIP) in Central Java. This was conveyed when he met with Singapore’s Minister of Trade and Industry, Chan Chun Sing in Singapore, Friday (21/09).
Indonesia’s President Joko Widodo and Prime Minister Lee Hsien Loong, had in August 2016 inaugurated the joint investing project in KIP, becoming alternative industrial complex for firms in Indonesia. The construction of KIP is the result of cooperation between Indonesian investors and Singapore.
The first integrated industrial area is projected to absorb the potential investment of Rp200 trillion (US$13.79 billion). In the first phase, the area to be cultivated is 1,000 hectares with a target of 300 tenants and absorbing 500,000 workers by 2025.
“To become an integrated industrial area, the development of KIP is planned for three stages with a total area of 2,700 hectares. This area will be supported by the development of industrial zones, ports, fashion cities, and settlements,” he said in written statement.
In addition, according to the minister, the two countries agreed to strengthen cooperation in the field of vocational education, especially to fill the needs in the industrial sector.
On the same occasion, the Indonesian Ambassador to Singapore Ngurah Swajaya said that the potential for Indonesia-Singapore collaboration in the future would be woven into the digital economy along with the onset of the industrial revolution era 4.0.
“One of the priorities is the development of Nongsa Digital Park in Batam as a concrete form of agreement between the two Heads of Government to make Batam a digital bridge of Singapore to Indonesia,” he explained.
In the first semester of 2018, Singapore’s investment in Indonesia was recorded at $5.04 billion, up 38 percent over the same period last year. Whereas throughout 2017, investment from the neighboring countries reached $8.44 billion. In addition, in the same year, Indonesia’s non-oil and gas export value to Singapore reached $9 billion, which made Lion Country the fifth largest destination in shipping national manufacturing products.
Singapore and Indonesia preparing six investment partnership to improve the bilateral relationships between the two countries. The Government encouraged the Singapore firms join with local company to develop Batam, Bintan and Karimun, as similar to KIP, a symbol of Indonesia-Singapore ties for over 50 years.
Given credentials of the developers, KIP 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.
SembCorp is also developer of Vietnam Singapore Industrial Park and four other industrial parks in Vietnam with total area over 5,000 hectares. PT Kawasan Industri Jababeka Tbk (IDX:KIJA), 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, KIP offers investors good connectivity to major infrastructure.