Amazing! Foreign Investors flock to Kendal, SEZ Council: Kendal Industrial Park Becomes a Role Model for SEZ in Indonesia

August 25, 2021

INDUSTRY.co.id - Candra Mata | Tuesday, 24 August 2021 - 21:35 WIB

Jakarta, Secretary of the National Council for Special Economic Zones (DN KEK) Enoh Suharto, revealed that Kendal Special Economic Zone (SEZ) continues to show excellent progress and has become a Role Model (good example) for the development of SEZs in Indonesia.

" Kendal SEZ is progressing very well, of course, if we evaluate the current SEZ, out of 15 SEZs (although in recent developments there are 19), Kendal SEZ is very well developed in attracting investment", said Enoh Suharto to the INDUSTRY.co.id editor that visited his office in Jakarta on Tuesday (24/8/2021).

Not only that, according to Enoh, Kendal SEZ could be an example for other SEZs in Indonesia, both in and outside Java, and even set an example for investor’s interest.

"So that later if investors ask which SEZs are successful in Indonesia, then we will be able to show this Kendal SEZ," Enoh added.

"So if governments or investors from abroad conduct comparative studies in Indonesia and if they want to know what the existing SEZs are like, then the Kendal SEZ can be an example of a role model for SEZs in Indonesia," said Enoh.

Then he said that the progress is due to the strategic location of the Kendal SEZ, where all infrastructure and supporting facilities have been established.

"The location is in Java, then the infrastructure is relatively better and more complete, where the social status has been established, the workforce and other facilities such as bank and so on have also been formed," he said.

For this reason, he hopes that the Kendal SEZ can realize its investment target of USD 5 billion in the next 5 years.

"Therefore, at that time the determination of the Kendal SEZ was given a target to attract investment, if I'm not mistaken, of USD 5 billion. And this is a target that must be achieved by the Kendal SEZ itself," he concluded.

Meanwhile, the Director of PT Kendal Industrial Park, Purbadi said that KIK continues to accelerate the Kendal SEZ as a National Strategic Project that has the ultimate facility and incentive in Indonesia.

It seeks to continue to accelerate investment growth in the region and contribute to regional development.

In fact, according to Purbadi, up to now, there have been 70 companies that have invested in Kendal SEZ.

These investors come from various countries, including Taiwan, China, Japan, South Korea, Hong Kong, Malaysia, Singapore, and Indonesia, including Europe and America, who will join soon.

"Now there are around 70 companies already joined our Industrial Park; MNCs from Europe and America are also soon to join. More than half of the companies are from abroad or are PMA dominant. 20 of them are already in operation, and 11 are under construction; possibly, we will have around 5 more to 16. So perhaps the total is 36, it's more than half by the end of this year," said Purbadi.

"While the government's total target is 70 trillion, the progress of SEZ has reached more than Rp. 19 trillion," he said.

It should be noted, that the Kendal SEZ is an industrial area with the status of Special Economic Zone covering an area of​​2,200 hectares. Kendal SEZ stipulated through Government Regulation Number 85 of 2019.

This SEZ is projected to attract an investment of IDR 72 trillion and a workforce of 20,000 people by 2025.

Currently, Kendal SEZ is at the first phase of development of an area of ​​1,000 hectares.

This SEZ is a joint venture between two largest industrial developers in Southeast Asia, namely Sembcorp Development Ltd from Singapore and PT Jababeka Tbk (KIJA) from Indonesia.

Since its establishment in November 2016, Kendal Industrial Park, which was inaugurated by the President of the Republic of Indonesia Joko Widodo and Prime Minister of Singapore Lee Hsien Loong, has also been designated as a National Strategic Project (PSN).