JAKARTA (TheInsiderStories) – Industrial zone worth of US$300 Million established in Karawang, West Java, with the concept of Industry 4.0. The industrial area was managed by international company China Fortune Land Development (CFLD) International.
KNIC is considered to have a strategic location because it is located 47 kilometers east of Jakarta and is right in the middle of the economic path between the cities of Jakarta and Bandung.
Minister of Industry Airlangga Hartarto at the Groundbreaking Ceremony for Karawang New Industry City Tenants (KNIC) on Thursday (06/20), explained that even with the existence of this industrial area, there could also has an opportunity to attract incoming investments in Indonesia.
“We appreciate the development of this Karawang New Industry City, especially as an industrial area directed towards industrial areas 4.0,” said the minister by adding this integrated industrial area is targeted to be able to create 4,000 new jobs.
He continued, the development of KNIC was able to attract investment of up to $100 million from six companies that have committed themselves to being tenants. These investors include China, Taiwan, Japan and Indonesia.
At the same occasion, there were groundbreaking of six companies that will operate, namely PT Wook Global Technology, PT Ikimura Indotools Center, PT Ruiyuan Karawang Industrial Innovation and Development, PT Wonderful Food International, PT Brightgene Biomedical Indonesia, and PT Binamitra Kwartasedaya. Among others the company engaged in the food, pharmaceutical, packaging and precision industries.
Moreover, it is supported by key infrastructure, such as the Cikampek toll road, Jakarta, Bogor, Depok, Tangerang dan Bekasi (Jabodetabek) Light Rail Transit (LRT), Bandung Jakarta fast train plans, elevated toll roads, Kertajati Airport, and Patimban Port.
This industrial area has an area of 205 hectares and will be equipped with world-class digital connection infrastructure. At present, management offices and facilities and infrastructures such as roads, electricity networks and other supporting facilities have been completed.
“This KNIC investment is the result of the realization of the visit of President Joko Widodo in 2016 before the the Group of Twenty (G-20) in Hangzhou. CFLD International is a partner at a seminar in Shanghai,” he said.
Hartarto, also stated, the investment also showed that Indonesia is still the main destination for the investors, especially in the industrial sector. This is in accordance with the president’s expectations in increasing investment.
Around of this area the industrial sector is still passionate. Moreover, later the fiscal incentives package will be issued to support the business climate increasingly moving.
For Indonesia, the northern corridor of Java has a strategic location in the development of industrial area. Because, the Karawang and Bekasi regions are considered to be the Detroit of Indonesia. Many of the automotive sectors there make one of their hubs at the regional level.
Furthermore, Hartarto reveled that the government continued to be determined to build and improve infrastructure. One of them is the Patimban Port project in West Java, which can support the needs of the automotive industry.
He expects the port to become one of the benchmarks for industrial cities. Besides that, it also became a showcase of industrial city best practice.
“With digitizing, productivity will be higher and support for logistics and e-commerce markets can be superior in West Java,” he said.
Zhao Hongjing from CFLD International said that he was determined to contribute to encourage national economic growth through the construction of industrial estates in Indonesia. One of the new ones is KNIC.
Hartarto stated that industrial estates in Indonesia continued to grow. Until now, more than 90 industrial estates that are already operating.
However, he continued, the growth of the industrial area needs to be accompanied by the development of digital technology infrastructure, such as the 5G internet network. This can sustain accelerated application of industry 4.0 in Indonesia.
Based on Making Industy 4.0, five manufacturing sectors that will become pioneers, namely the food and beverage industry, textiles and clothing, automotive, chemical, and electronics.
“As the logistics and warehouse became the main parts we saw the demand was getting higher. So, smart logistics also need to be taken into account to improve the development of industrial clusters. Then, related to the data center, this is important because it is the brain of industry 4.0 that is in big data, ” he ended.
Written by Willy Matrona, Email: email@example.com