AKR Corporindo Reveals JIIPE Industrial Estate Potentially Generates Revenue Of IDR 20 Trillion

Rupiah (Photo: Antara)

JAKARTA - PT AKR Corporindo Tbk (AKRA) revealed that there is a potential income of IDR 18 trillion to IDR 20 trillion from the remaining 780 hectares of land in the Java Integrated Industrial and Ports Estate (JIIPE) industrial area.

Head of Investor Relations AKRA Ignatius Teguh Prayoga said that this potential can only be converted into income when all land is acquired for the next 7 years to 8 years.

"Land inventory sold to the industry has an indicative potential of around Rp. 18 trillion to Rp. 20 trillion in revenue levels for the next 7 years to 8 years," said Ignatius during a public expose live, Friday, August 30.

Ignatius said that the sale of land at JIIPE is currently one of the drivers of new business performance for the company in the future. Because the operation of PT Freeport Indonesia's copper cathode smelter (PTFI) has attracted the attention of new tenants in the current mineral downstream industry.

Meanwhile, the company noted that there were 17 tenants operating at JIIPE with a cumulative total investment of 4.6 billion US dollars. Therefore, Ignatius said that this year JIIPE is still targeting the sale of land of 115 hectares (ha) to 120 ha.

According to Ignatius, the target for land sales in the industrial area is relatively high in line with increased sales during the 2022 and 2023 periods. At that time, the land that was successfully sold was 44.5 ha and 91 ha, respectively.

"Currently, JIIPE SEZ is hosting Freeport and other metal and derivative industries which are also equipped with world-class electricity and gas networks," he said.

On the same occasion, AKRA's Director & Corporate Secretary, Suresh Vembu, said that the company is optimistic that future performance will grow in line with the development of the national and global economy. In addition to the downstream program, the phenomenon of supply chain shifting by relocating production from Chinese countries to Southeast Asian Regions will be a breath of fresh air for the development of SEZs in Indonesia.

"Where the SEZ policy and its status as the best SEZ will increase Indonesia's appeal as an industrial destination," he explained.

Suresh said that JIIPE Gresik's SEZ continues to maximize its potential, not only land monetization, but also other businesses such as providing electricity, water, gas, and environmentally friendly & renewable energy.

"With the operation of Freeport's Largest Smelter in the World at JIIPE, the copper product-based Industrial Ecosystem and its derivatives will develop and are ready to be absorbed by several major tenants at JIIPE," he said.