Available land, reasonable labor wages, and adequate infrastructure support are why investors enter Central Java. Among the many developments in the province, the newly established Batang Integrated Industrial Estate (IEE) or “Grand Batang City” takes the spotlight. It is projected to become one of the biggest industrial cities in Central Java.
“This area is prepared by the government seriously, supported by all the necessary infrastructure and facilities. Investors only need to prepare capital and technology. The Ministry of Investment/BKPM will handle the business permits,” said the Minister of Investment/ Chairman of BKPM Bahlil Lahadalia about Grand Batang City in one of his statements.
Investing in Batang IEE brings several benefits, including five years of free land lease. Investment license process is also easier and faster. The Ministry of Investment/BKPM is also ready to assist in processing business and operational licenses at the central and regional levels.
Grand Batang City accommodates space, technology, and innovation. The area spans 4,300 hectares and is built around the concept of “Smart and Sustainable Industrial Estate”. Sixty percent of the site will be used for industrial activities, while the remaining 40 percent as a public facility and green space area.
Land clearing for Cluster 1 of the first phase was done in April 2021. According to Bahlil Lahadalia, 450 hectares allocated in the first stage of Batang IEE’s development had been booked by investors, and the second stage of development is now in progress.
As of December 10, 2021, the industrial estate has received six major tenants. The firsts to have their groundbreaking on last May 20, 2021, were KCC Glass Corporation and PT Nestle Indonesia.
South Korea’s KCC decided to build its first overseas glass venture in Batang, with an investment amounting to USD350 million. The factory manufactures 438,000 tons of glass annually and offers jobs to 1,300 people. Meanwhile, PT Nestle Indonesia built its Bandaraya factory to produce packaged milk and ready-to-drink beverages. The factory will use advanced technology to meet the green operational standards.
“On behalf of KCC Glass, I would like to thank the Ministry of Investment/BKPM team, the KITB Consortium, and related SOEs, as well as residents of Central Java, especially Batang Regency, and the Indonesian government for providing full support and active cooperation. We are very excited to build our first overseas factory in this prosperous land,” shared KCC Glass Indonesia CEO Nae Hoan Kim. He affirmed that the factory would work with local businesses for logistics, production, and consumption materials.
Other confirmed tenants with foreign participation are South Korea’s LG Chem (chemical) and Cosmos Indo Ink (printing ink), The Netherland’s Wavin B.V. (plastic pipe), Japan’s Tawada Healthcare (healthcare equipment), and China-affiliated PT Energik Volts Motor Indonesia (electric vehicles).
The Grand Batang City team is optimistic that more parties will invest in the area as they continuously receive visits from those interested in investing in the estate. “A lot of investors from Jakarta are currently queueing for a booking in the area,” shared Batang Regent Wihaji, who hopes to make Batang the top region for investment amount in Central Java in 2022.
LG Chem Segera Groundbreaking di KIT Batang (Tribunnews.com)
KCC Glass Breaks Ground on Greenfield Indonesian Float Glass Plant (Glass International)
Grand Batang City Managed to Exceed Its Marketing Target in 2021 (Grand Batang City Website)
KIT Batang Ready to Welcome Investors per May (Invest Magazine)
Batang – Integrated Industrial Estate: Smart and Sustainable (Invest Magazine)