More American Companies Move Their Factories to Central Java Industrial Park

August 04, 2020

Central Java Industrial Park - During his private dialogue with President Indonesia, Joko Widodo, President of the United States Donald Trump discussed on his plan to relocate American factories from China to Indonesia. This is the impact of US and China trading war that is not going to be better on the nearer future. Coordination Minister of Maritime and Investment for Indonesia, Luhut Binsar Pandjaitan, said that Indonesia will prepare 4,000 hectares land in Central Java Industrial Park for pharmaceutical industry that will set up their factories there (source: CNBC Indonesia).

There are two industrial park(s) at Java which will potentially accept the offer: Kendal Industrial Park and Brebes Industrial Estate. Both are already seen as Central Java industrial state land which improve both national and regional economy for the next five to ten years. Now, the state government is working with Central Java provincial government to set all the possible permits and regulations to smoothen the process.

Spokesperson for Coordinating Ministry of Maritime and Investment in Indonesia, Jodi Mahardi stated that the discussion is still on early stage which there will be a lot of coordination to be handle in the upcoming months. Meanwhile, Minister of Industry Agus Gumiwang, has prepared for 27 new industrial estate to be built in 2020-2024, which Central Java industrial park still being put on the list (source: CNBC Indonesia).

As an international industrial estate, Kendal Industrial Park has almost finished developing the first phase of its development at the end of 2020. With at least 58 business entities on the area, KIP is a very promising industrial land to be more developed by both government and private sectors. For Brebes Industrial Estate, the government has also set plans to push the region to be another emerging industrial park at Java which can contribute to the national economy by bring in more investors to Indonesia.