Development of the Kendal Industrial Area (KIK) has a positive effect on increasing investment in Indonesia.

The first integrated area in Central Java Province is targeted to absorb investment potential of up to Rp 200 trillion and a workforce of 500 thousand people.

"The investment value of KIK construction in the first phase is estimated to reach Rp 7 trillion with a total land area of ​​860 hectares and will be completed in the next five years," Industry Minister Airlangga Hartarto said in an official statement to Kompas.com, Tuesday (11/15/2016) .

Airlangga explained, the KIK construction is planned to be three stages with a total area of ​​2,700 hectares to become an integrated industrial area supported by the development of industrial zones, ports, Fashion City and settlements.

"KIK is also encouraged as an export-oriented labor-intensive industrial area," said Airlangga.

Within this one year period, continued Airlangga, there were already 20 investors who invested their capital in KIK with a total investment value of Rp 4.3 trillion and would absorb a workforce of 4,000 people.

"One investor from Singapore who has been operating at KIK since August 2016 is PT. Tat Wai Industries," he said.

The company built a factory on KIK's land area of ​​10 thousand square meters with an investment of Rp 65 billion which produces furniture products in the form of tables, chairs and cabinets.

"Currently, the workforce that has been absorbed reaches 75 people, of which 80 percent are local workers from Kendal Regency," explained Airlangga.

According to the Minister of Industry, the KIK project, which began eight years ago, was initiated and prepared by the Ministry of Industry together with the Provincial and Kendal Regencies as an effort to accelerate the distribution and even distribution of national industry and economy.

"This is also in accordance with the direction of President Joko Widodo to realize Indonesia's centric development," he said.

source: bisniskeuangan.kompas.com