Durian. Indonesian President Joko Widodo on June 30 visited Batang Industrial Zone (BIZ) in Central Java which is prepared to welcome relocation plan of various foreign investments from China.
At least another 4,000 hectare land has been prepared for the purpose, he said while welcome seven foreign companies that have relocated their business from China recently to Batang and are located at 450 hectare area.
President Widodo called related government authorities to provide good service to foreign investors who want to relocate their business to Indonesia.
“If they can process [business] permit there [in other countries] within one month, we must be able to do it in one week. If the can process in other places within a week, we must be able for one or two days. We must have good competitiveness,” President Widodo said.
Widodo was upset when Indonesia missed its chance to host any 33 companies that had relocated from China to other Southeast Asian countries in 2018 and 2019.
“Why do we open this industrial zone in Batang? It is only one answer. We want to open job as many as possible,” the president said.
State-owned Enterprises Minister Erick Tohir in said land for BIZ belongs to state-owned company PTPN IX, therefore no land release problem in the future.
Besides BIZ, the government of Indonesia plans to expand its industrial sites to others regencies in Central Java, Tohir said.
There is three industrial zones – Batang in Central Java, Cikarang in West Java and Gresik in East Java – on Java Island alone where BIZ is hoped to be a super hub of those industrial zones due to its location in the center of the island, Tohir said.
Taiwanese audio system manufacture Meiloon, Japanese Sagami Electronics, United States’ solar lighting producer Alpan, Taiwanese tire maker Kenda, Japanese automotive component Denso, Japanese electronics maker Panasonic and South Korean LG Electronics are seven companies that have finalized their business relocation commitment to Indonesia.
While 17 other foreign business entities are in the process to finalize their relocation commitment from China to Indonesia which is expected to add 112,000 jobs with total investment about $37 billion.