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Jakarta Post
The Jakarta Post
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Province promotes more industrial zones

  • Ainur Rohmah

    The Jakarta Post

Semarang | Thu, April 17, 2014 | 10:13 am

Authorities in Central Java have been actively promoting the development of three industrial zones outside Semarang'€™s city limits, given that industrial growth in the province has generally been focused in the province'€™s capital city.

According to Central Java Investment Board (BPMD) head Yuni Astuti, the three industrial zones being promoted are located in Kendal, which covers an area of 3,000 hectares; in Demak with a total area of 400 hectares; and in Boyolali with 330 hectares.

Yuni said the three industrial zones were being promoted so that the industry could be developed according to the spatial plan.

'€œThat way, problems in the field can be minimized and electricity facilities will be sufficient,'€ Yuni said in Semarang on Wednesday.

She added that there were currently 19 industrial zones in Central Java, six of which were located in the provincial capital.

They exclude four new industrial zones for which permits were issued by the BPMD at the beginning of the year.

The four companies issued licenses are PT Bumi Raya Perkasa with an investment of Rp 202.5 billion (US$17 million), PT Ngaliyan Bantolo Asri with Rp 335 billion, PT Jawa Tengah Lahan Andalan (Jateng Land) with Rp 125 billion and PT Mitra Bumi Dadi Mukti with an investment of Rp 1.7 trillion.

Yuni also said that investment potential in Central Java was still wide open. Among other sectors considered to have potential are agriculture, manufacturing
and energy.

Central Java, Yuni said, provides more benefits for companies as the province offers lower wages compared to other provinces in Java, such as Jakarta, West Java and Banten. '€œWage and security issues in Central Java are relatively conducive,'€ she said.

Separately, the Regional Competitiveness Survey (SDSD) team, which comprises representatives of the private sector and the government, has been preparing for the establishment of the Central Java Investment Relations Unit (IRU).

Once established, the unit is expected to store data needed by potential investors in Central Java.

With the establishment of the IRU, data needed by investors could be collected more comprehensively and systematically and made accessible online.

The IRU will also deal with investors and investor candidates to address problems and questions regarding the development of economic policies and the latest investment opportunities.

A member of the SDSD team, Christian Schoen, said investment services were a result of coordinated efforts by different institutions in Central Java, adding that good coordination could improve the investment climate significantly. The IRU will function as the first contact point for investors.

Meanwhile, the chairman of the Central Java branch of the Indonesian Employers Association (Apindo), Frans Kongi, expressed hope that the administration would enhance the investment climate by improving infrastructure, anticipating electricity requirements and providing land clarification for industrial purposes.

'€œAnother important thing is the investment license. It has to be made easier [to obtain],'€ Frans said.