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Lack of clean power blights Batang industrial park

Analysts and a business association say clean power has become a top priority for foreign companies when selecting locations for overseas factories, especially for electric vehicle and battery manufacturers.

Aditya Hadi (The Jakarta Post)
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Jakarta
Thu, October 10, 2024

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Lack of clean power blights Batang industrial park President Joko “Jokowi“ Widodo delivers a speech for the inauguration of the Batang integrated industrial park in Central Java on July 26, 2024. (Antara/Harviyan Perdana Putra )

T

he Batang integrated industrial zone (KIT) in Central Java is moving ahead with its second phase of development, but analysts have raised concern over a lack of access to renewable energy that could deter potential investors looking to meet sustainability criteria.

On Oct. 3, Investment Minister Rosan Roeslani inaugurated two new factories at the Batang KIT.

One is South Korea’s KCC Glass, Batang KIT’s inaugural tenant, which signed a Memorandum of Understanding (MoU) in November 2020 and began construction a year later. The other is Dutch pipe manufacturer Wavin, which started building its facilities in October 2022.

KCC Glass says the 46-hectare Batang plant, its largest outside South Korea and the biggest glass factory in Southeast Asia, has a production capacity of 438,000 tonnes of glass once fully operational. Around 80 percent of its output is designated for export.

“We have invested Rp 4 trillion so far and plan to invest another Rp 8 trillion in Indonesia,” John Byun, president director of KCC Glass Indonesia, said during the press briefing.

Meanwhile, Wavin has invested Rp 825 billion in its first factory in Indonesia, where it has been selling products for over 35 years. Roughly 25 percent of its production is to be shipped to Southeast Asia, Australia and New Zealand.

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Rosan commended both companies for their export-oriented focus, noting this aligned with the government’s goal of improving the trade balance. The minister added that the factory start-ups could draw more investment to the Batang KIT as its infrastructure was “complete” and its management proactive.

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