More Investors Set Deals in Kendal Industrial Park

July 07, 2020

As the development of first phase will be finished at the end of 2020, Kendal Industrial Park (KIP) attracts more investors to come and set up their businesses on this new special economic zone. Starting its development on 2016, KIP has been occupied by 62 tenants and it keeps getting more and more potential business owners afterwards. The aim of the developers to be one of the best industrial park in Indonesia pushes KIP to seek more promising investors to set deals on this industrial area.

A joint venture from two big developers in Southeast Asia, Jababeka Group and Sembcorp Development on this project, draws Indonesia and Singapore investors directly.  President Director & CEO of Kendal IndustrialPark, Stanley Ang, confirmed that majority of the investors coming from locals (Indonesia) around 49%, followed by China 24%, Taiwan 19%, Singapore 4%,  South Korea 1%, Japan 1%, and Malaysia 1% .The total investment is around 9,6 trillion rupiahs. It can shape new job markets for more than 14,800 people’s.

Other investors have expressed their commitments to set the deals with this promising Indonesia special economic zone, however, many are still working on their internal affairs. Global economic condition also plays role. Trade dispute between China and USA, for instance, concerns Chinese investors to put their money on Indonesia industrial park in Kendal. Yet, these challenges do not stop KIP to promote their potential business growth to the investors. Government’s supports on resources, permits, and facilities becomes the main marketing strategy to potential business owners.

This strategy has positive impact in return. A Taiwanese company, Taiwan External Trade Development Council (Taitra), announced on September 2019 a plan to invest US$ 170 million (around 2,5 trillion rupiahs) in Kendal Industrial Park. President of Taitra, James CF Huang, admitted that attractive offers from KIP and Central Java government made him to set the deals in Kendal (source:Jakarta Post). Having Taiwanese investors is not new for Central Java. For the past 5 years, Ganjar Pranowo, governor of Central Java, greeted many business owners from Taiwan at his office. This new investor is hoped to bring many new jobs created for the local people.

With more investors joining the business, CEO of Kendal Industrial Park makes sure that all the constructions and resources facilities operating smoothly. On another side, Ministry of Industry has also facilitated the construction of Furniture Industry and Wood Processing Polytechnic in KIP, to support the target of making KIP as Indonesia industrial park which will potentially boost national economic growth and job vacancies in the upcoming future.