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s Indonesia seeks to boost foreign direct investment (FDI), landmark cooperation by an Indonesia-Singapore joint venture in Kendal, Central Java, may provide the momentum needed to realize the ambition.

The Kendal Industrial Park joint venture is established between the Jakarta-listed industrial estate developer Jababeka and Singapore-based Sembcorp. Jababeka is known for its 5,600-hectare industrial estate Kota Jababeka in Cikarang, West Java.

Meanwhile, Sembcorp’s business portfolio includes the development of industrial parks, power plants, and water and wastewater management systems in several countries, namely China, India, South Africa and Chile.

Jababeka president director Setyono Djuandi Darmono said the cooperation with Sembcorp was strategic and opened the door for future investment, which he claimed would benefit Jababeka and Indonesia.

“This cooperation with Sembcorp will expose Indonesia to more opportunities and investment,” Darmono said over the phone recently.

He expected upcoming foreign investment to come from Singapore and other countries, citing Singapore’s positive reputation and wider access to capital and technology in the global market.

Robust foreign investment is one goal President Joko “Jokowi” Widodo’s administration is trying to achieve. Jokowi has gone on several road shows overseas to attract investors and the administration has rolled out dozens of economic stimulus in an attempt to create a more investor-friendly climate.

Manufacturing is among sectors that it offers to investors, as it will create multiplier effects on the economy.

Businesses that invest in an industrial estate are guaranteed to obtain the necessary permit within just three hours from the Investment Coordinating Board (BKPM) if they employ a minimum 1,000 people or if the investment value reaches at least Rp 100 billion (US$7.55 billion).

Meanwhile, Kendal Industrial Park CEO Ling Poon Lim insisted that trust was a large factor for a company in placing investment.

The first company to express its commitment to invest in the new industrial park is Singaporean furniture company Tat Wai, even when construction at the industrial park has not begun.

Poon Lim said Tat Wai had previously done business with Sembcorp and entrusted the latter with its Indonesian expansion.

“When Tat Wai first came we didn’t have anything, but they trusted us enough to invest. I think Sembcorp’s participation in this project gives that sense of confidence for Singaporean investors,” he said over the phone on Tuesday.

He added that Jababeka was also a trusted company with a good track record established among various investors from many countries.

When completed, the Kendal Industrial Park will accommodate manufacturing companies on 2,700 hectares, equivalent to more than 4,000 soccer fields.

It has secured Rp 3.28 trillion in commitment from 16 companies from Indonesia, Singapore, Malaysia, Japan and China.

Separately, the BKPM says it expects Singapore to top foreign investment realization in Indonesia once again this year. Singaporean firms last year invested $5.9 billion in Indonesia, more than countries such as Malaysia and Japan.

BKPM foreign investment and control deputy chairman Azhar Lubis said it was not only Singaporean firms that actively invested in Indonesia but many other foreign firms entered Indonesia through Singapore.