Government's 'Red Carpet' For Entrepreneurs From China At KIT Batang

Several officials observed the explanation regarding the development of the Batang Integrated Industrial Zone. (Photo: Ministry of Industry)

JAKARTA - The government, through the Ministry of Industry, continues to boost the development of a number of infrastructures in the Batang Integrated Industrial Estate (KIT), Central Java.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that the development of KIT Batang has great potential to capture opportunities for investment in Indonesia from a number of industrial sectors that want to relocate their factories from China.

"We see that the industrial area in Batang has a strategic location. Geographically, Batang Regency is close to Semarang City, which has the Ahmad Yani International Airport", he said in a press statement as quoted by VOI on Saturday, February 6.

The Minister of Industry added that his party will also encourage industrial estate managers to be able to complete their facilities, including energy supply infrastructure and logistical access. It aims to be an attraction for investors because of the creation of an integrated area.

"The government is in discussion with a number of investors and is trying to accommodate whatever they need. Of course, the government wants to create a conducive business climate, starting from providing ease of business licenses to offering fiscal and non-fiscal incentives", he said.

The development of industrial estates is expected to become a new economic center in the region. This has been proven through the construction of the IMIP industrial area in Morowali, Central Sulawesi, and the IWIP industrial area in Central Halmahera, North Maluku.

Meanwhile, the development of KIT Batang is in accordance with the mandate of Presidential Regulation (Perpres) Number 79 of 2019 and Perpres No. 109 of 2020. Currently, a joint venture has been formed with the company name PT. Batang Integrated Industrial Zone (KITB).

In the KITB structure, it is supported by PT. Housing Development (PP) owns 35 percent of shares, Wijayakusuma Industrial Estate (KIW) by 30 percent, PTPN IX with 25 percent, and Perusda Batang also owns 10 percent.

"We are optimistic that KIT Batang can become a bounce-back project that offers new economic development in the Batang region in particular and Central Java in general", Agus concluded.