Kendal Industrial Estate Ready to Become The Home of World Class Manufacturing Industry

Jakarta – President Director of Kendal Industrial Estate (KIK) Stanley Ang revealed that his party is ready to accept investors who will relocate their factories to Indonesia.
Stanley explained, KIK has now become a home for industry. According to him, the factors of wages, taxes and low prices of raw materials are common reasons in the choice of industrial locations.
However, Stanley explained, the existence of the Covid-19 pandemic made the industry must be literate new normal by setting up factories in other locations.
“Because the industry needs to have another factory to maintain its operational sustainability. In addition, the factory also needs to have an alternative supply chain (raw material) as an alternative,” Stanley said in a webinar held by the Indonesian Embassy in Singapore Monday (7/7) with the theme Decentralization of Global Supply Chains: Rising Opportunities.
Stanley then mentioned there are six reasons why investors need to look at KIK.
First, KIK is supported by good macro infrastructure.
“Entrepreneurs and companies do not need to worry. Because KIK is a special economic zone as a national strategic project stipulated in PP 85/2019 which provides incentives and tax holiday facilities, tax allowance, customs, and guarantees the availability of infrastructure to support industrial activities. And so far “There is already a Trans Java toll road, port construction and electricity availability and it is close to Tanjung Mas port, Semarang,” Stanley said when contacted by INDUSTRY.co.id some time ago.
Second, costs for employee wages are competitive.
According to him, Kendal Industrial Park offers young and skilled labor factories, competitive labor costs compared to West and East Java, and management graduates from local universities and vocational institutions.
“At the moment, KIK has also been operating a Polytechnic which is managed by the Ministry of Industry, to ensure the availability of ready and skilled human resources,” he said.
Then third, rich in Human Resources and complete facilities. And fourth, KIK is packaged completely as a one stop solution.
“Fifth, we provide a fairly complete micro infrastructure such as water treatment ready for consumption and electricity. Sixth, KIK is in the area of ​​the economy and special taxes,” he concluded.
Just so you know, currently KIK has been inhabited by more than 62 companies from 8 countries, namely China, Taiwan, Japan, Singapore, Hong Kong, South Korea, Malaysia, Indonesia.
The company starts from the furniture, textile, fashion, food and beverage (Mamin) industries, pharmaceuticals, medical equipment, electronics, optics, and metal fabrication.
The majority of the industry comes from foreign investment and 48 percent of it from domestic.
In addition, several potential investors from the USA, Europe and several other countries in Asia reportedly continued to communicate related to investment plans and direct visits to the Kendal Industrial Estate.
Meanwhile, the Indonesian Ambassador to China concurrently Mongolia, Djauhari Oratmangun said the Covid-19 pandemic made a felt impact on the manufacturing industry sector. The reason is, not a few companies in the United States and Japan have factories in China.
Meanwhile, China is also a mainstay of Japanese companies in supplying various components.
Djauhari said, companies from both countries then began to think of a strategy to relocate their factories to reduce risk.
“At the same time to find alternative supplies of raw material products from other countries, including from Indonesia,” Ambassador Djauhari said.
According to Ambassador Djauhari, outside the Covid-19 situation, some US companies have indeed begun relocating their factories from China in recent years. Increasing wage costs and increasingly complex licensing are the reasons.
Besides also because they want to enlarge the volume of production by establishing in other countries. Moreover, the US and China are also currently involved in trade wars.
Meanwhile, companies from Japan want to find alternative supply countries for the components they need. Developing countries (like Indonesia) also emerged as a solution because of some attractive offers that were given.
“Such as lower wage costs and faster access to develop their markets,” Ambassador Djauhari explained.

The article above is an article that has been published in media industry.co.id, namely: https://www.industry.co.id/read/70060/kawasan-industri-kendal-siap-menjadi-rumah-industri-manufaktur-dunia
Kendal Industrial Estate Ready to Become The Home of World Class Manufacturing Industry