Kendal Industrial Estate has received 66 investors with total investment Rp19.2 trillion (US$1.32 billion) - Photo by the Company

JAKARTA (TheInsiderStories) – President director and CEO Kendal Industrial Estate, Stanley Ang, said on Tuesday has received 66 investors with total investment Rp19.2 trillion (US$1.32 billion). He adds, 49 of investors come from Indonesia, 40 percent from China and Taiwan, and the rest from Singapore, Hong Kong, South Korea, and Malaysia.

The special economic zone (SEZ) covering an area of ​​2,200 hectares with a cluster concept that is interwoven between Sembcorp Development Ltd., from Singapore and PT Kawasan Industri Jababeka Tbk (IDX: KIJA). The developer holds 51 percent shares and the remaining is owned by Sembcorp, Sembcorp, a unit of Temasek Group.

In the phase I, the companies developing 1,000 hectares of land and the occupation is around 45 percent. Its projections the development of the project will be completed in 2026. Kendal SEZ is targeting six industrial sectors, such as food and beverage industry, furniture, fashion, automotive, electronics, and others.

In this year, the parent targeting marketing sales to reach Rp1.4 trillion, up 55.78 percent from last year amounted to Rp898.7 billion. The issuer sees a solid pipeline of more than 100 hectares in Cikarang and Kendal, originating from Asia, Europe and the United States, local companies.

Singaporean companies have been among the first to invest in the Kendal Industrial Park in Central Java. Since the zones opened in 2016, more than 60 companies have set up their operations in the special economic zone, pumping in $1.73 billion worth of investment.

The first integrated industrial area is projected to absorb the potential investment of Rp200 trillion by 2025. In the first phase, the area to be cultivated is 1,000 hectares with a target of 300 tenants and absorbing 500,000 workers at the same year.

Jababeka itself is optimistic about the industrial estate business prospects in this year. The spokesman, Muljadi Suganda explained, last year the company managed to book pre-sales or marketing sales around Rp898.7 billion, only half of last year resulted because the property market in was  affected by the COVID-19 pandemic.

In 2021, the developer  targeting the marketing sales to reach Rp1.4 trillion, up 55.78 percent from last year’ marketing sales, in line with the low inflation forecast and the stability of the Rupiah.

US$1: Rp14,500

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