May 27, 2020
Since 2016, Indonesia Investment Coordinating Board reported that the number of Industrial Estate in Indonesia is growing rapidly. More industrial companies like automotive, furniture, food, stationery, construction materials, and warehousing are developing their business in one united industrial park. Therefore, more industrial parks in Indonesia are built, especially in Java; the most populous and industrialized island in the nation. One of the largest industrial land in Indonesia is Kendal Industrial Park, located 25 km from the capital city of Central Java. As the largest Central Java industrial park, Kendal Industrial Park has 2,200 hectares with more than 61 tenants at the industrial zone. It is a cooperation between Indonesia developer, PT Jababeka Tbk and Singapore developer, Sembcorp Development Ltd. It was officiated by President of Indonesia, Joko Widodo, and Prime Minister of Singapore, Lee Hsien Loong, made it as the project of industrial park at Java which had fully supports from both governments. It is also proven by the Indonesia government which was announced Kendal Industrial Park as one of the National Strategic Project in Central Java industrial estate area. In December 2019, the nation officially announced Kendal Industrial Park as new Special Economic Zone (SEZ), issued in Presidential Decree Number 85 Year 2019. Indonesia Investment Coordinating Board noted that Kendal Industrial Park, as special economic zone, is expected from Indonesia government to get US$ 4.7 billion within automotive and food and beverages industries on that area. The coordinating economic minister of Indonesia targeted such amount of investment as an encouragement for the business to promote the industrial land, as well as boosting national economy. Furthermore, if all investments come into realization in Kendal Industrial Park, there will be 20,000 new jobs. It can also contribute to the export revenue up to US$ 500 million while the import value is projected to reach US$ 250 million. With all these hopes and targets from the government, President Joko Widodo rules out some policies to support Industrial Land in Indonesia which are put to the Indonesia Special Economic Zone. He has ordered his ministers to prioritize investment and manufacturing to fasten Special Economic Zone development in Central Java and East Java. It means the government will simplify infrastructure regulations which often become challenges on the development. At last, Center for Strategic and International Studies on economic department added the government can also issue other regulations which related to export, import, and labor for industries in Special Economic Zone to lure the investors.