Located In The Same Area With The LG Electric Car Battery Factory, KEK Kendal Is Targeted To Expand Employment

JAKARTA - The Kendal Special Economic Zone (KEK) is expected to increase the Human Development Index (HDI) in Kendal Regency and Central Java in general.

Quoting the broadcast of the Coordinating Ministry for Economic Affairs, it was stated that the increase in labor absorption would increase, the unemployment rate would decrease, education would be better, and the widest possible open employment opportunities for the community.

"This will provide a significant multiplier effect on the economy, not only in Kendal but also in Central Java", said Kendal Regent Dico M Ganinduto, Tuesday, April 27.

For information, the KEK development aims to increase investment, export, import-substitution, create jobs, create breakthrough models for regional development through industrial and service development.

KEK is also targeting industries with global competitiveness, international standard tourism services, education and health services, and the digital economy.

Meanwhile, the advantages of this Special Economic Zone lie in the fiscal and non-fiscal facilities, both from the central and regional governments. Besides that, it is also given various facilities to get these facilities.

"With these various advantages, it is hoped that the KEK Kendal will become a different industrial area and be able to become the best investment destination", he said.

The electric car battery factory

In a previous VOI report, it was stated that the electric car battery manufacturer LG will be the first corporation to set up a production facility in the Batang Industrial Estate. For information, the Kendal SEZ and Batang Industrial Estate are located in the same area and support each other in manufacturing activities.

"There are already investors who are committed to starting groundbreaking in May, namely LG and glass manufacturers. Of course, we will fully support it”, said Central Java Governor Ganjar Pranowo in an official statement, Wednesday, April 21.

For information, the total investment of LG which will cooperate with the State-owned enterprise (BUMN) consortium is estimated to be worth IDR 142 trillion.

Meanwhile, the investment value that has entered the Kendal SEZ until this year has reached IDR 19.3 trillion. The investment came from a number of countries, including Taiwan, China, Japan, South Korea, Hong Kong, Malaysia, and Singapore.

This creates jobs for 9.000 people. In terms of export performance, the KEK Kendal has exported IDR 118 billion per year or the equivalent of USD 8.2 million with a projected increase in the following periods.