Jakarta. Hoi Fu Paper Packaging has broken ground on a production facility in Indonesia’s special economic zone (SEZ) of Kendal over the weekend, with investments totaling Rp 1.12 trillion (around $64.6 million).

According to the government estimates, the project is expected to create jobs for 1,000 workers, with approximately 95% of the workforce being local. Employment will take place in three phases, starting with 300, then another 500, before employing 200 workers in the final stage. 

“The government is committed to encouraging incentives for businesses that wish to invest in SEZs,” Susiwijono Moegiarso, the secretary of the Coordinating Ministry for Economic Affairs, said. 

Kendal Regent Dyah Kartika Permanasari said that the regency boasted huge potential as an economic buffer zone. Dyah added: “We hope this facility will also boost the local economy and spur job creation.” 

Local news outlet Detik reported that Hoi Fu had come from China, a country that has been topping the list of Indonesia’s source of foreign direct investment. Another outlet Tribunnews wrote that Hoi Fu had specifically come from Hong Kong. The upcoming facility will also provide an “end-to-end packaging services” starting from the original design, research and development, as well as intelligent manufacturing.

The Kendal SEZ -- which lies in Central Java -- has attracted Rp 101.93 trillion or almost $5.9 billion in cumulative investment as of Q1 2026. These investments have created jobs for 117,941 people. The Kendal regency’s incremental capital output ratio (ICOR) reached 3.92, reflecting the ability of incoming investment to generate optimal economic output. 

Official government data showed Hong Kong investment in Indonesia totaled $2.7 billion in the first quarter of 2026. Investments from mainland China totaled $2.2 billion over the same period.