Minister Bahlil: Toll Roads Are Considered By Capital Plant Investors In Indonesia

Investment Minister Bahlil Lahadalia (Photo: dock. VOI)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia revealed that one of the considerations for investors to invest in Indonesia is toll road access to industrial areas.

Bahlil explained that the investment ratio in Java is quite high. According to Bahlil, this is because many toll road infrastructures have been implemented and built.

"Because especially in Jakarta, in Java, West Java and Central Java, East Java, DIY has had a tremendous impact on the considerations of investors," Bahlil said at the Investment Realization Press Conference in Quarter II and Semester I 2024, at the Ministry of Investment office, Jakarta, Monday, July 29.

For example, continued Bahlil, easy access in the Batang Integrated Industrial Zone (KITB), Batang Regency, Central Java. He said, the distance from KIT Batang to the toll road is only 350 meters.

Bahlil said the existence of toll roads near this industrial area could reduce logistics costs or costs. Therefore, continued Bahlil, there were 18 companies that entered the Batang KIT.

"Because it entered the logistics cost much cheaper, it was like yesterday in Batang, 18 companies entered even though the industrial area was only 350 meters from the toll road," he said.

Previously reported, the Minister of Investment or Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia reported that at least 18 companies occupy the Batang Integrated Industrial Zone (KIT), located in Batang Regency, Central Java Province.

In his report to President Joko Widodo, Bahlil said these 18 companies had employed at least 19,000 workers.

"We report to the President that KITB stems have now entered 18 companies and have entered around 19,000 with a total investment of more than Rp. 14 trillion," Bahlil said in his remarks at the KITB inauguration, Friday, July 26.

Furthermore, Bahlil estimates that for the next 10 years, this industrial area will absorb 250,000 new workers.

On the same occasion, Bahlil said that in September there will be an LG Group company from South Korea that will set up a cathode factory that is an electric vehicle battery ecosystem.

"A cathode construction will be carried out from the car battery ecosystem from the LG Group which will be built in September because the FS (feasibility study) has been completed in August," he said.