Coordinating Minister for the Economy Airlangga Together with Minister of Industry Agus Gumiwang Appreciate Kendal Special Economic Zone
July 23, 2022
Kendal, 23 July 2022 – In today's agenda, the Coordinating Minister for the Economy, Airlangga Hartarto, accompanied by the Minister of Industry Agus Gumiwang, visited the Kendal Industrial Park (KIK) located in Kendal Regency, Central Java. The purpose of the visit was to review the progress of the area after the pandemic and after receiving of the status of Kendal Special Economic Zone (SEZ).
KIK itself officially became a Special Economic Zone in 2019. With this new status, Kendal SEZ is given special facilities by the government that can provide many benefits for investors. Among them are in fiscal benefit such as reduction of corporate income tax, PPN, PDRI, and free import duty, as well as other non-fiscal benefits.
After becoming a SEZ, the number of business entities in KIK has increased quite rapidly “We were established in 2016, and officially became a SEZ in 2019. After becoming a Special Economic Zone, the number of Business Entities who joined our AIndustrial Park increased by 55% compared to before receiving SEZ status . Currently, the number has reached 76 companies from nine countries, both Asia and Europe,” said Didik Purbadi as the Executive Director of Kendal Industrial Park.
Meanwhile, Didik also mentioned that of the 76 companies, most of them were export-oriented. Of course, this has an impact on the growth of export numbers. In 2021, the total export value from Business Entities in the Kendal SEZ reached USD 23.9 million and it is estimated that this year the number will increase by 111.2% or by USD 50.5 million. Didik also said that this could not be separated from the intervention and support of the government at all levels.
On the other hand, rapid growth was also seen in the number of employment absorption. As a SEZ, KIK is targeted to be able to expand job opportunities in Kendal, Central Java. The realization even reached 514% after it became KEK Kendal. In the first quarter of this year, there have been 17,650 workers absorbed by Business Entities in the Kendal SEZ.
Coordinating Minister for the Economy Airlangga Hartarto also appreciated the achievement of the Kendal SEZ, which this year has absorbed a total investment of 28.3 trillion rupiah. "I think this is a very good achievement, which with this large investment value, the existence of the Kendal SEZ certainly has contributed to economic growth, not only regionally but also nationally."
Agus Gumiwang as the Minister of Industry during his visit expressed hope that the existence of the Kendal SEZ can provide a kind of multiple effect for the growth of Central Java and its surroundings, "We hope that the growth of the Kendal SEZ can provide many positive impacts, not only growth in investment value and labor, but also in terms of industrial growth, growth in supporting facilities such as residential development, and infrastructure growth in Central Java and its surroundings.”