As many as 20 new investors are ready to invest in the Central Java industrial estate this year

March 18, 2019

Eldo Christoffel Rafael Kontan.co.id - 18/03/2019 - 18:34 WIB

KONTAN.CO.ID - JAKARTA. Industrial estates in Central Java are increasingly prospective by new investors. This year it is projected that there will be around 20 additional new investors who will soon realize investments in this region with a total estimated investment of US $ 1.5 trillion.

Head of Sales & Marketing at PT Kawasan Kendal Industry (KIK) Juliani Kusumaningrum said, until February 2019, there were 51 tenants who would invest in KIK. Companies operating in the Kendal industrial area include PT Tat Wai, PT APP Timber, PT Ganda Sugih Arthaboga, PT MMI, PT Kendal Eco Furindo, PT Roda Maju Bahagia and Shophouses.
Juliani explained that this new investor was also due to the impact of the construction of the Trans Java toll road that the government had completed. So that new investors believe that infrastructure development will facilitate goods logistics road access from Kendal to other cities.

"Central Java is not only seen as a connecting hub but as an alternative location for expansion with competitive advantage of manpower," Juliani told Kontan.co.id, Monday (3/18).

There are six industrial sectors pursued to fill the KIK industrial area. Namely the food industry, furniture, fashion, automotive, electronics and logistics.

To attract investors, KIK also prepares Ready Built Factory, with 14 units and occupancy now reaching 67%. The building already exists and is ready for use. KIK offers 2 schemes namely purchase and rental.

"This is specifically for the incubator - potential investors who are in the start up stage or also for trial operations while the KIK plant is being built," Juliani said.

The KIK development is planned to reach three stages with a total land area of ​​2,700 hectares (ha) to become an integrated industrial area supported by the development of industrial zones, commercial areas, retail and settlements. "Housing will be developed in two to three years from now," he said.

In the financial statements of PT Kawasan Industri Jababeka Tbk (KIJA) in the third quarter of 2018, the total value of KIK assets was Rp 1.56 trillion, up from the previous year's Rp 1.50 trillion.

Earlier in January, KIK's President Director and CEO Stanley Ang detailed that in 2018 there were 48 companies that expressed interest in investing in KIK, plus the two companies that had dealt in January 2019.

"Two companies that will immediately execute their business in KIK, namely one from the steel industry sector which relocated the factory, and another packaging industry that expanded," he said a few moments ago.

Stanley targets, in quarter II-2019, investors will grow faster because conditions will be more stable. "Domestic investors no longer wait and see seeing political conditions, while the conditions of the trade war are also expected to subside," he said.

KIK was built by PT Kawasan Industri Jababeka Tbk (KIJA) with Sembcorp Development Indonesia Pte. Ltd., a subsidiary of Sembawang Development Ltd. from Singapore.

From the records of the Ministry of Industry, as the first integrated industrial area in Central Java, KIK has the potential to absorb up to Rp 200 trillion in investment and a workforce of 500,000.