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Taiwanese company to invest $170 million in Kendal Industrial Park
Central Java was the third most preferred foreign investment destination among the country’s 34 provinces during the April-June period this year.
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Kendal Industrial Park map. (Courtesy of Kendal Industrial Park/File)
A
s Indonesia steps up efforts to attract foreign direct investment (FDI) following concerns over the economic slowdown, a Taiwanese company has announced a plan to invest US$170 million in Kendal Industrial Park, Central Java.
Taiwan External Trade Development Council (Taitra) president James CF Huang revealed the investment plan during a meeting with Central Java Governor Ganjar Pranowo in Puri Gedeh, Semarang, on Wednesday. Huang said the various incentives offered by the province had prompted the company, the name of which was kept confidential throughout the meeting, to invest in Kendal Industrial Park.
“Many businesses from Taiwan have made investments in Central Java over the years. The number of potential investors has increased lately. That’s why we came [to the province] – to follow up on the latest investment plans. We hope our partnership [with the administration] would strengthen bilateral [relations between Taiwan and Indonesia],” Huang said.
The President Joko “Jokowi’ Widodo administration has increased efforts to attract more FDI to improve the country’s slowing economic growth. Indonesia’s gross domestic product (GDP), the largest in Southeast Asia, grew only 5.05 percent in the second quarter, its slowest pace in two years. Investment, which accounts for about 30 percent of GDP, expanded only 5.01 percent in the same period.
Central Java was the third most preferred FDI destination among the country’s 34 provinces during April-June this year. It welcomed 508 FDI projects worth $732.9 million during the period, trailing behind West Java and Jakarta, according to Investment Coordinating Agency (BKPM) data.
Ganjar said Taiwan was among the top 10 countries to have invested in the region.
“Investors have flocked to Central Java because we offer a safe and stable investment climate. In addition to incentives and ease of doing business, we boast a highly skilled workforce,” he said.
