The Government Establishes Kendal As a Special Economic Zone for Export-Oriented Industries

August 15, 2019

Hariyanto - August 15, 2019 - 17:52 WIB - Jakarta - Minister of Agrarian Affairs and Spatial Planning (ATR), Sofyan Djalil said, Kendal Regency, Central Java was designated as a Special Economic Zone (KEK) which is engaged in industries that are directed for export.

"Kendal Regency will be built a specific KEK, export destination commodities. Not all important substitutions," Sofyan Djalil said as quoted by Antara news agency on Thursday (08/15/2019).

According to Sofyan, currently the Government has prepared 1,000 hectares of land, and has now been controlled by around 715.9 hectares or equivalent to 71.6 percent.

Meanwhile, Minister of Industry, Airlangga Hartarto said, Kendal is a SEZ which has a focus on export-oriented logistics and has been based on industry 4.0 such as an integrated smart port between textiles, clothing, food, beverages, automotive, furniture, furniture and other chemicals.

"We're ready. So it is oriented to 60 percent of the export industry," said Minister of Airlangga.

In terms of support, such as infrastructure, the Minister of Transportation, Budi Karya Sumadi, provided that Kendal has adequate facilities.

For example the Tanjung Mas Port which is currently still in operation and is sufficiently adequate in carrying out exports. No need to build a new port.

Nevertheless, Minister Budi said, the government would still allow private parties interested in carrying out development and construction in Kendal, including the construction of new ports.

However, the port built by the sqasta only offers shipping goods to the Port of Tanjung Mas. "It is possible, but he is as a feeder, not as a direct exporter," said the Minister of Transportation.

Meanwhile, Executive Director of Kendal Industrial Park, Didik Purbadi said, the investment value for the construction of Kendal KEK infrastructure and facilities is valued at IDR 4.8 trillion with an increase of 80 thousand workers per year in 2025 in the Inj.

"We promise to bring in investments (FDI) reaching US $ 600 million to US $ 700 million in the next three years," said Didik.