South Korean FDI of IDR 429 Billion Enters KEK Industropolis Batang, Boosting Export Industry and Attracting 6,000 Workers

KEK Industropolis Batang again attracted foreign direct investment (FDI) from South Korea through the presence of PT Simone Batang Indonesia, a global manufacturing company based on leather products that are export-oriented.

This investment commitment was marked by the signing of the Industrial Land Utilization Agreement (PPTI) on Wednesday (6/5) at the Management Office Ballroom of KEK Industropolis Batang by the Director of Marketing & Development of KEK Industropolis Batang, Indri Septa Respati, and President Director of PT Simone Batang Indonesia, Kim Jung Shik.

With an investment value of IDR 429 billion, PT Simone Batang Indonesia will build a production facility on an area of 8.28 hectares. This project is projected to absorb around 6,000 workers, strengthening the position of KEK Industropolis Batang as one of the export-based labor-intensive industrial centers in Indonesia.

The entry of this investment is relevant in the midst of Indonesia's efforts to strengthen the competitiveness of the global manufacturing industry, especially in attracting the relocation and expansion of international companies. Director of Marketing & Development of KEK Industropolis Batang, Indri Septa Respati, said that the presence of PT Simone reflected the increasing confidence of global investors in Indonesia.

"This investment shows that Indonesia, through KEK Industropolis Batang, is increasingly seen as an important part of the global supply chain. We see a growing trend where international companies make this region a production base for export markets," he said in a written statement, Thursday, May 7.

PT Simone is a global manufacturing company that has been established since 1987 and has operations in various countries, including Vietnam and Cambodia. Globally, the company controls about 10% of the world market share and 30% of the United States market, with retail value of more than 7 billion US dollars.

PT Simone Batang Indonesia President Director, Kim Jung Shik, called Indonesia a strategic location for the company's long-term expansion.

"We see Indonesia as one of the future production bases in Asia. KEK Industropolis Batang provides the combination of advantages we need, ranging from policy support, regional readiness, to labor potential."

Construction of the plant is scheduled to begin in the next two months, with the target of completing construction by July 2026 and starting operations gradually by July 2027.

In addition to expanding the global production base, this investment is also expected to provide direct economic impact through increased exports and the creation of large-scale employment.