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Indonesia Prepares Brebes Industrial Zones for Japan, US Plants Relocation

Indonesian government prepares Brebes Industrial Park to relocates Japan and United States (US) plant from China to Brebes industrial estate as an effort to boost the development of Central Java and spur national economic growth, said industry minister - Photo by Industry Ministry Office

JAKARTA (TheInsiderStories) – Indonesian government prepares Brebes Industrial Park to relocates Japan and United States (US) plant from China to Brebes industrial estate as an effort to boost the development of Central Java and spur national economic growth, said industry minister. The trade tension between the two largest economy, he acknowledge become an opportunity for the country.

“The plan is for the relocation of industrial companies from Japan and the US that will leave China,” the minister, Agus Gumiwang Kartasasmita said in a statement on Friday (05/29).

Brebes industrial zones is targeted to be a core industry for the textile products, the leather and footwear industry, the food and beverage industry, the furniture industry, also the pharmaceutical and medical device industry. He explained, the acceleration of the development of the industrial zones based Presidential Regulation Number 79 of 2019 concerning the Acceleration of Development in Central Java, which targets economic growth of 7 percent.

State-owned enterprises, PT Wijayakusuma Industrial Estate has assigned as the developer and manager of Brebes industrial zones. No further details how much investment the company prepares for the projects.

“Currently, the master plan and feasibility study is being prepared. Hopefully this stage can be completed in July 2020, even in the current pandemic conditions,” Kartasasmita stated.

He hopes that the land acquisition for the development of the Brebes with a total land area of ​​3,976 hectares can be realized soon. This area covers three sub-districts, namely Bulakamba, Tanjung, and Losari.

The industrial zones part of National Priority Projects in 2020. Last week, President Joko Widodo has approved 89 infrastructure projects to build in this year. Beside build in Java Island, the government plans to build 19 priority industry areas outside Java from 2020 until 2024.

Kartasasmita said the government intends to grow industry outside Java since 2015 by developed 14 priority industry areas. Until 2019, the government has built 24 industry areas in the Sumatra, Kalimantan and other islands excluded Java.

With this success, the government will add 19 industrial zones in nine areas. In Sumatra which are Sei Mangkei and Kuala Tanjung in North Sumatra, Galang Batang and Bintan Aerospace Industry in Riau, Kemingking in Jambi, Tanjung Enim South Sumatra, Pesawaran and Way Pisang in Lampung, also Sadai in Bangka Belitung.

Then, the ruler will establish six areas in Kalimantan, which are Ketapang in West Kalimantan, Surya Borneo in Central Kalimantan, Buluminung in East Kalimantan, Tanah Kuning in North Kalimantan, also Batulicin and Jorong in South Kalimantan. The rest are Bangkalan in Madura, Weda Bay in North Maluku, Palu in Central Sulawesi, and Teluk Bintuni in West Papua Barat.

The minister said the industry areas development is focused on agro industry, oil and gas, metal and coal, also high technology industry and aerospace. The industry area planning has been through examination from various aspects.

While,  areas in Java will be focused on high technology, labor-intensive and industry with water low consumption and outside Java tend to be natural resources industry, logistic efficiency system industry, and center of new economic development. To date, there are 103 areas that have operated with 55,000 ha total areas. The areas are located in Java of 58 areas, Sumatra of 33 areas and other areas.

Besides, there are 15 industry areas under construction and 10 areas in the planning stage. The activity in industrial areas has generated a multiplier effect on the national economy, ranging from the added value increasing, local human resources absorbing, and foreign exchange earnings.

Written by Staff Editor, Email: theinsiderstories@gmail.com