Toy Manufacturer Suggested to Move to Kendal Industrial Estate

October 09, 2017

The Indonesian Toy Association encourages the toy industry to expand to Central Java, precisely to the Kendal Industrial Estate.

Sutjiadi Lukas, Chair of the Indonesian Toy Association (AMI), said it was working with the industrial area manager to provide clusters of toy industry areas. Both parties are planned to immediately sign a memorandum of understanding.

"We will hold the MOU as soon as possible and plan a signing together with a working visit to the Kendal Industrial Estate area on October 13, 2017," he told Bisnis.com, Monday (10/09/2017).

Lukas said the association chose to push the toy industry to Central Java because Jakarta is now considered to be very crowded and some locations are exposed to industrial prohibition zones. In terms of employee wages, the value of regional minimum wages (UMR) in the Kendal Industrial Estate is also lower than that of industrial estates in Jakarta, thus supporting more entrepreneurs.

"We also want an equal distribution and absorption of employment so that not all of them will go to Jakarta. In addition, infrastructure in Kendal is also sufficient," he said.

At present, the domestic toy industry is facing the challenge of weak demand and less optimal production. Nevertheless, Lukas stated that the potential of the domestic children's toy market is still open with a fairly high birth rate every year.

Child birth growth in Indonesia is in the range of 4.5 million per year. Although it is not included as a basic requirement, children's toys are needed items.

"This is what drives local and outside toy entrepreneurs to market their products in Indonesia. [The market] children's toys are still very open, "he said.

source: bisnis.com