Minister Of Industry Agus: China And Taiwan Dominate Companies Investing IDR 19.2 Trillion In Kendal Industrial Estate

JAKARTA - The Ministry of Industry continues to spur the competitiveness of the Kendal Industrial Estate (KIK), Central Java, to be more integrated so that it can become an attraction for investors. Currently, KIK already has 66 tenants.

Minister of Industry Agus Gumiwang Kartasasmita said KIK is one of the integrated clusters that can be an example for the development of other industrial estates in Indonesia.

Therefore, said Agus, the development of KIK will continue to be accelerated into an export-oriented labor-intensive industrial area. This is believed to be able to accelerate efforts to recover the national economy due to the impact of the COVID-19 pandemic.

"We appreciate that KIK currently has 66 tenants with an investment achievement of IDR 19.2 trillion. This investment certainly provides a broad multiplier effect for the economy, including foreign exchange earnings and employment," he said in a written statement, Wednesday, June 9.

According to Agus, 49 percent of the investors came from Indonesia, then 40 percent were dominated by China, Taiwan, and the rest from Singapore, Hong Kong, South Korea, and Malaysia.

"The development of KIK is planned in three stages with a total land area of 2,200 hectares to become an integrated industrial area supported by the development of industrial zones, ports, fashion cities, and settlements," he said.

Furthermore, Agus explained that KIK is a tangible manifestation of the cooperation between Indonesia and Singapore, which was built by PT Jababeka Tbk with Sembcorp Development Indonesia Pte. Ltd., a subsidiary of Sembawang Development Ltd. from Singapore.

For your information, the operation of KIK was officially inaugurated by President Joko Widodo and Prime Minister of Singapore Lee Hsien Loong in November 2016.