News
Jokowi Inaugurates the KITB
WINDONESIA July 31, 2024
President Jokowi inaugurates the KITB's operational phase in Central Java on July 26, 2024. (Danareksa).
The Batang Integrated Industrial Park (KITB)'s operational phase has been inaugurated by President Joko WidodoKI on July 26, 2024. The industrial park included in the list of Indonesia's National Strategic Projects (PSN) has the potential to boost the economy in Central Java Provice.
KITB or Grand Batang City is managed by state-owned enterprise Danareksa. KITB President Director Ngurah Wirawan stated that there will be 18 tenants, most of them foreign investors, who have acquired land for factory construction in the industrial park.
"The investments for the KITB's construction reached Rp14.8 trillion," Ngurah revealed on July 25, 2024.
"The gas needs for this area reaches 15 MMSCFD (million standard cubic feet per day)," he added.
Center of Economic and Law Studies (Celios) Executive Director Bhima Yudhistira said the booming of industrial parks in Central Java has led to the increase of workforce in Central Java and surrounding provinces. The improvement, he noted, could help reduce unemployment rates in those regions, especially for young people and vocational school graduates. Bhima opined that every industrialization process always has a positive impact on nearby small business actors.
"So, the industrial area is like a magnet. There will be boarding houses, stalls, and various other supporting services," he stated on July 26, 2024.
Bhima stressed the importance of the readiness of the indusrial park's managers and tenants, adding that they should focus on maintaining the area's waste processing and not build a new coal-fired power plant there.
The KITB is built on 400 hectares (ha) of landm which will later accommodate factories from several industries and is planned to reach a total area of 4,300 ha. There are four phases of development for the KITB. All 450 ha of phase I land sold and 650 ha of phase II land currently in the development stage, some of which have been ordered for purchase by foreign and local investors.
The foreign investment that has went into the KITB has opened up employment for 19,000 local workers, with 200,000 jobs set to be available after all construction funded by them are finished.
The eight foreign tenants who will populate the KITB are:
1. Glass company KOC Glass Indonesia from South Korea;
2. Footwear company Yih Quan Footwear Indonesia from Taiwan;
3. Solar panel company SEG Manufaktur Ind. from USA;
4. Construction company Sub-Wanxinda Batang Industry Land Investment from China;
5. Construction company Wanxinda Green Travel Industry Development from China;
6. Tanning company Xian Jiang Group Indonesia from China;
7. Ink company Cosmos Indo Ink from South Korea;
8. Pipe company Wavin Manufacturing Indonesia from the Netherlands.
In addition, the ten domestic tenants of the KITB are:
1. Medical equipment company Jayamas Medica Industri;
2. Polyvinyl chloride company Unipack Plasindo;
3. Medical equipment comapny Tawanda Healthcare from Indonesia;
4. Medical equipment company Interskala Medika Indonesia;
5. Medical equipment company Interskala Medika Solusindo;
6. Gas industry company Samator Indo Gas;
7. Medical equipment company Acindo Medika Sejahtera;
8. Furniture company Window Shutters Indonesia;
9. Wood pellet company Sumber Graha Sejahtera;
10. Ceramic company Rumah Keramik Indonesia.
Source: industri.kontan.co.id
