The government encourages the acceleration of the development of the Kendal Industrial Area (KIK) because it is expected to be one of the strategic efforts to increase Central Java's contribution to the national economy. For this reason, the Ministry of Industry and the Central Java Provincial Government pioneered the development of KIK through the preparation of a master plan and the planned strategic economic area of ​​Central Java to become a special economic zone based on industrial zones.

"Because the contribution of Central Java to the national economy is currently around 9.7 percent or below West Java by 27 percent and East Java which reaches 18 percent," said Minister of Industry Airlangga Hartarto at a Press Conference before the Inauguration of Kendal Industrial Estate (KIK) Park by the Bay in Semarang, Central Java, Sunday (11/13).

Also present on this occasion were Minister of Foreign Affairs Retno Marsudi, Central Java Governor Ganjar Pranowo, Founder of PT Jababeka Tbk. Setyono Djuandi Darmono, President Director of PT Jababeka Tbk. Budianto Liman and Sembcorp Development CEO Kelvin Teo. KIK is a joint venture between PT Jababeka Tbk and Sembcorp Development Indonesia Pte. Ltd., a subsidiary of Sembawang Development Ltd. from Singapore.

Airlangga said that Presidential Regulation No. 3 of 2016 concerning Acceleration of the Implementation of National Strategic Projects stipulates that KIK is a national strategic project that obtains facilities in licensing and non-licensing. "For example, the ease of direct construction investment services that provide convenience for companies in parallel managing IMB, environmental permits and other permits to accelerate development," he explained.

Airlangga believes that the presence of KIK can help the local and regional economies of Central Java by creating jobs both directly and indirectly, creating new markets, and preparing new cities as poles for other supporting activities.

"Currently there are 20 companies committed to investing in KIK, consisting of investors from Japan, Malaysia, Singapore and Indonesia. The 20 companies will absorb labor as much as 4,035 people with 31 hectares of land occupancy and an investment value of Rp 4.3 trillion, "he explained.

Meanwhile, Ganjar said he was optimistic that the development of KIK triggered economic growth in Central Java because there would be many companies entering. "We will provide support and incentives, among others through integrated port infrastructure and railway lines," he said.

The rapid movement of the business and economic world in Central Java, according to Ganjar, made many investors interested in entering and investing. "One of the interesting things about the investment potential is the availability of land and the support of stakeholders who are ready to support all investments that enter. "Starting from the availability of loans for business funds from banks, abundant workforce, to industrial areas and business sharing facilities," he explained.

source: kemenperin.co.id