Jakarta. President Joko "Jokowi" Widodo officially inaugurated the operational phase of the Batang Integrated Industrial Area (KITB) in Central Java on Friday.

In his speech, President Jokowi mentioned that KITB initially spanned 400 hectares, but due to high demand, the government decided to expand it.

"Now the total planned area is 4,300 hectares, which will accommodate industries and factories," said President Jokowi.

KITB is being developed on a total area of 4,300 hectares, with construction divided into four phases. The first phase covers 450 hectares and is already occupied by more than 18 companies. With this expansion, the government projects that the area will create enough jobs for 250,000 workers.

"Currently, the investment entering the area amounts to Rp 14 trillion and involves approximately 19,000 workers. This is just the beginning. Therefore, I urge the Chief Investment Minister, the Investment Ministers, and all ministers involved in this industrial area, as well as the directors of the Batang Industrial Area, to actively market this area," continued Jokowi.

President Jokowi also announced several companies set to begin operations soon, including KCC Glass Indonesia in September, followed by plastic piping developers and anode and cathode industries in August and September.

"This will become a highly efficient area for investors, capable of creating widespread job opportunities for our people," concluded Jokowi.

Danareksa CEO Yadi Jaya Ruchandi highlighted the potential of KITB to attract foreign direct investment (FDI) from the global industrial relocation trend and create significant employment opportunities. KITB is part of Danareksa's portfolio, a state-owned enterprise holding company that specializes in transforming struggling state companies and managing industrial areas.

"Danareksa is dedicated to boosting KITB's capacity to attract FDI and generate substantial job opportunities, thereby contributing to national revenue through taxes and regional income through retributions. We have outfitted KITB with comprehensive basic infrastructure and utilities, supported by excellent connectivity, including highways, ports, and railways. KITB embodies the principles of a green, sustainable, and circular economy," Yadi said.

 South Korea’s KCC Glass is set to begin production in the Central Java town of Batang in August.

KCC Glass first began constructing the plant -- which lies in the Batang Industrial Park -- in 2021. The groundbreaking ceremony also made KCC Glass the first foreign investor to operate in the industrial estate.

The KCC Glass Indonesia plant sits on 49 hectares of land. The investment value is worth around Rp 5 trillion ($305 million). The project is also expected to generate job opportunities for 1,200 people.

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