Investment Is Increasingly Aggressive, Batang Integrated Industrial Zone Accelerates Area Development and Operations with Credit Disbursement of IDR 786 Billion

Photo: Documentation of PT Kawasan Industri Terpadu Batang (KITB)

JAKARTA - PT Kawasan Industri Terpadu Batang (KITB) or Grand Batang City is increasingly aggressive in developing the area and has entered the second phase of phase -1 covering an area of 400 hectares and is preparing to operate the area in the first semester of 2024 which is planned to be inaugurated directly by the President of the Republic of Indonesia.

Grand Batang City is a National Strategic Project (PSN) which has a land area of 4,300 Ha with the concept of "Smart, Green, and Modern" by prioritizing sustainable development of the area according to the principles of "Sustainability and ESG".

Over a period of two years since its founding on December 11 2020, KITB has completed Phase - 1 covering an area of 450 Ha, and has brought in 13 investors, both foreign investors (PMA) and local investors (PMDN). The total investor investment that has been absorbed by the Batang Integrated Industrial Zone (KITB) is IDR 6.8 trillion and is expected to absorb a workforce of 15,000 workers in the first phase.

In addition, as a National Strategic Project, the Government has assisted KITB to build vital regional infrastructure through APBN and PMN funds amounting to IDR 3.6 trillion.

To prepare for the operations of the Phase-1 area and complete the Phase-2 infrastructure, KITB received funding from PT Bank Danamon Indonesia Tbk (Danamon) amounting to IDR 786 billion. The Credit Agreement, which was signed on November 21 2023 at Danareksa Tower, is a strategic step for KITB to gain the trust of banks and complete the trust and support of the government and investors.

"We welcome the collaboration with Danamon, which is part of MUFG, a leading global financial services group and the largest bank in Japan in the form of providing loan funds amounting to IDR 786 billion, and represents the trust of financial institutions in KITB," said Evi Afiatin, Finance Director of PT Kawasan Industri Terpadu Batang.

Meanwhile, the Main Director of PT Kawasan Industri Terpadu Batang Ngurah Wirawan said that this loan is expected to be a catalyst to encourage the growth and development of industrial areas in the future.

"This collaboration between Danamon and KITB has high hopes for achieving the common goal of creating sustainable growth and making a positive contribution to the development of industrial areas in Indonesia," said Ngurah.

PT Kawasan Industri Terpadu Batang or "Grand Batang City" is the largest industrial area in Indonesia and is located right in the middle of the Trans Java toll road which connects all industrial centers and logistics routes on the island of Java. KITB was built to answer the anxiety of Jokowi, President of the Republic of Indonesia, to have a competitive industrial area in Asia, and to be able to attract foreign investment (Foreign Direct Investors) to Indonesia as a catalyst for economic growth and job creation.

Grand Batang City is connected by two main routes, namely the Pantura National Road and the Trans Java Toll Road which divides the Grand Batang City area. Apart from that, to attract more investor interest, Grand Batang City will immediately build a Jetty Port and Train Station which can serve as a mode of transportation for people and goods.