Java Island is the center of Indonesia's manufacturing industry, and the Central Java Industrial Belt is an emerging and vibrant industrial belt among the three industrial belts on Java Island, with highly competitive land and labor costs. Land costs are approximately 50-100 USD, and labor costs are around 150-200 USD. What industrial parks are there in the Central Java Industrial Belt? Let me explain in detail:
First, the Batang Industrial Park, located in Batang Regency, 60 km west of Semarang Airport. Established in 2020, it covers an area of 4,300 hectares and is the only large-scale government-led industrial zone on Java Island. It is not only a national strategic project of Indonesia but also became the Indonesian side of the China-Indonesia Two Countries Twin Parks project in 2021. Among the enterprises settled in the park, there is a Chinese-invested company, Wanxinda. Its founder, Chen Riling, is a firm practitioner of the Two Countries Twin Parks initiative. As the Chinese operator of the Batang Industrial Park, Wanxinda pioneered a one-stop factory delivery solution for Chinese enterprises in Indonesia. In May 2023, it signed a land purchase agreement with the park, with the foundation laying ceremony on December 10 of the same year. It plans to build and deliver 1 million square meters of factory space by 2024, striving to build over 10 million square meters of industrial factory space within five years. This park is highly suitable for export-oriented and labor-intensive manufacturing enterprises, with 14 companies already settled.
Second, the Kendal Industrial Park (KIP), located in Kendal Regency, 30 km west of Semarang Airport. It is a joint venture between Singapore's Sembcorp Group and Indonesia's Jababeka Group, covering about 2,200 hectares. It was inaugurated in 2016 by Indonesian President Joko Widodo and then Singapore Prime Minister Lee Hsien Loong. Kendal Industrial Park is one of the two special economic zones on Java Island, offering special zone incentives for corporate income tax, value-added tax, and import duties. Companies such as Lopal Technology, BTR, and Zhongce Rubber have already settled in this park.
Third, JIPS Industrial Park, established in 2013, is located in Demak Regency, east of Semarang. The total planned area is 300 hectares, and it currently hosts 22 large enterprises, including Chinese-invested ones such as Liansu, Huafeng, Xinbao Shares, Sailun Shares, and Huagang Group.
With the prevalence of trade protectionism in Europe and America, apart from Vietnam, more and more Chinese labor-intensive and export-oriented enterprises are choosing Indonesia, especially the Central Java Industrial Belt, as their overseas production base. This enables them to more easily and unobstructedly reach the European and American markets. Coupled with Indonesia's population of 280 million, the fourth largest in the world, and its huge consumption power, Indonesia's development potential is enormous.
Java Island is the center of Indonesia's manufacturing industry, and the Central Java Industrial Belt is an emerging and vibrant industrial belt among the three industrial belts on Java Island, with highly competitive land and labor costs. Land costs are approximately 50-100 USD, and labor costs are around 150-200 USD. What industrial parks are there in the Central Java Industrial Belt? Let me explain in detail:
First, the Batang Industrial Park, located in Batang Regency, 60 km west of Semarang Airport. Established in 2020, it covers an area of 4,300 hectares and is the only large-scale government-led industrial zone on Java Island. It is not only a national strategic project of Indonesia but also became the Indonesian side of the China-Indonesia Two Countries Twin Parks project in 2021. Among the enterprises settled in the park, there is a Chinese-invested company, Wanxinda. Its founder, Chen Riling, is a firm practitioner of the Two Countries Twin Parks initiative. As the Chinese operator of the Batang Industrial Park, Wanxinda pioneered a one-stop factory delivery solution for Chinese enterprises in Indonesia. In May 2023, it signed a land purchase agreement with the park, with the foundation laying ceremony on December 10 of the same year. It plans to build and deliver 1 million square meters of factory space by 2024, striving to build over 10 million square meters of industrial factory space within five years. This park is highly suitable for export-oriented and labor-intensive manufacturing enterprises, with 14 companies already settled.
Second, the Kendal Industrial Park (KIP), located in Kendal Regency, 30 km west of Semarang Airport. It is a joint venture between Singapore's Sembcorp Group and Indonesia's Jababeka Group, covering about 2,200 hectares. It was inaugurated in 2016 by Indonesian President Joko Widodo and then Singapore Prime Minister Lee Hsien Loong. Kendal Industrial Park is one of the two special economic zones on Java Island, offering special zone incentives for corporate income tax, value-added tax, and import duties. Companies such as Lopal Technology, BTR, and Zhongce Rubber have already settled in this park.
Third, JIPS Industrial Park, established in 2013, is located in Demak Regency, east of Semarang. The total planned area is 300 hectares, and it currently hosts 22 large enterprises, including Chinese-invested ones such as Liansu, Huafeng, Xinbao Shares, Sailun Shares, and Huagang Group.
With the prevalence of trade protectionism in Europe and America, apart from Vietnam, more and more Chinese labor-intensive and export-oriented enterprises are choosing Indonesia, especially the Central Java Industrial Belt, as their overseas production base. This enables them to more easily and unobstructedly reach the European and American markets. Coupled with Indonesia's population of 280 million, the fourth largest in the world, and its huge consumption power, Indonesia's development potential is enormous.