JAKARTA (TheInsiderStories) - President Joko Widodo announced, South Korean firm, KCC Glass Corporation, has planned to develop new factory at Batang Industrial Zones in Central Java, in May 2021. The company has occupied 49 hectares of land with an investment value of Rp5 trillion to produce glass for architecture and automotive, with 80 percent of which will be exported.
The industrial zones was inaugurated directly by the head of state on June 30, 2020. 60 percent of the zones is allocated for industry and the other is for public facilities and green areas. Basic infrastructure development for Grand Batang City is estimated to be completed in May 2021 and ready to accept the tenants.
Beside KCC Glass, a number of multinational companies have committed to invest in the Batang zones, including South Korean battery producer LG Chem, Dutch plastic pipe manufacturer Wavin B.V., and Indian ceramic-maker, Abroad Vitrified. The government has prepared approximately 4,300 hectares of land for the industrial zones area.
In the first phase, 450 hectares are prepared to build three zones for manufacturing and logistics, innovation and creative economy, also light and medium industries. The industrial estate was developed in addition to being one of the cornerstones of industrial development in Indonesia, it also provided the widest possible job opportunities for at least 250,000 local workers.
Furthermore, the area is also expected to attract an investment of Rp41.8 trillion in the first phase to support the national economic recovery. Batang Industrial Zones managed by three state owned enterprises, PT PP Tbk (IDX: PTPP), PT Kawasan Industri Wijayakusuma, PT Perkebunan Nasional IX, and the regional companies.
Since September of 2020, a permanent exit route around 372 kilometers has been built also the Cirebon – Semarang gas pipeline with a target of completion within 6 – 12 months. Its estimated that gas flow from PT Perusahaan Gas Negara Tbk (IDX: PGAS) is ready to be distributed by the end of 2021 or early 2022.
Then, for the electricity supply is prepared from the Batang power plant. The construction of the industrial zones is divided into two stages. Phase 1 is the development of 450 hectares of land and Phase 2 covers a total area of 4,300 hectares.
Widodo administration aimed to creates a triangle of economic areas in Java Island to support the regional economic growth. He asserted, the north coast of Java, which is already connected to the toll road, must become super corridor. The areas must be connected to the toll road at the surrounding areas like Jakarta, Bekasi, Subang, Karawang, and Purwakarta.
He also reminded his staff that the big strategy for port development, especially Patimban, Tanjung Priok, and 28 other ports are completely consolidated so it become complement each other, accelerate the regional economic growth, and provide speed of logistics services, as well as our export products are increasingly efficient and competitive.
Beside Batang, for the Central Java region, the government also prepared Kendal, Semarang, and Demak industrial estates. Then in East Java there are Tuban, Lamongan, Gresik, Surabaya, Sidoarjo, Mojokerto and Bangkalan. Beside in Java, the government also plans to build 19 priority industry areas from 2020 until 2024.
Earlier, minister of industry, Agus Gumiwang Kartasasmita, said until 2019, the government has built 24 industry areas in the Sumatra, Kalimantan and other islands excluded Java. Next, Sei Mangkei and Kuala Tanjung industrial zones 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 country will establishs 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.
Kartasasmita 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.
US$1: Rp14,500
Written by Editorial Staff, Email: theinsiderstories@gmail.com
