JAKARTA (TheInsiderStories) - Investment Coordinating Board announced Dutch manufacturer Wavin B.V., LG Corp., and KCC Glass Corp., from South Korea, will invests in Batang Integrated Industrial Zone, Central Java. The areas managed by three state owned enterprises (SOEs), 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.
President Joko 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.
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.
“The requirement for being priority industry areas included the management, the capability of financing, tenant, strategic value, local development capability, and government intervention forward,” he said by adding there will be obstacles while establishing industry areas, but it should be accomplished altogether. The challenges are preparing documents and field, license, management, tenant hunting, and others.
Kartasasmita explained the areas in Java will be focused on high technology, labor-intensive and industry with water low consumption. While, areas outside Java tend to be natural resources industry, logistic efficiency system industry, and center of new economic development.
“The development of new economic centers will be integrated with areas development, included infrastructure building,” he said.
To date, said the minister there are 103 areas that have operated with 55,000 hectares of land. The minister explained there as 58 areas in Java, 33 areas in Sumatera, and other areas. Besides, there are 15 industrial areas under construction and 10 areas in the planning stage.
US$1: Rp14,000
Written by Editorial Staff, Email: theinsiderstories@gmail.com
