KENDAL INDUSTRIAL PARK SHOWCASES NEW MILESTONE OF INDONESIA, SINGAPORE RELATIONS by Fardah

Jakarta, Nov 18, 2016 (Antara) - President Joko Widodo of Indonesia and Prime Minister Lee Hsien Long of Singapore officiated the opening of the Kendal Industrial Park in Central Java Province, on November 14, 2016.

         The 2,700 hectares industrial park, which is also known as Park by the Bay, is a joint development between Singapore's Sembcorp Development and Indonesia's industrial estate developer PT Jababeka, and has opened a year before the 50th anniversary celebrations of the establishment of diplomatic relations between Indonesia and Singapore.

         "Lee and I agree that the investment cooperation in Kendal Industrial Park marks a new milestone in our bilateral relationship, particularly in the investment sector," Jokowi said in a joint statement in the Central Java provincial capital of Semarang after holding the First Indonesia-Singapore Leaders' Retreat.

         The project is a win-win outcome for both countries, the Singapore prime minister said in his opening remarks. "Our economies are closely intertwined. If Indonesia does well, Singapore will also do well. This is why Singapore wants Indonesia to succeed," he noted.

         Lee considered the large scale project a significant one as it will create up to 4,000 jobs in Kendal. In fact, about 100,000 jobs are expected to be created by 2021, when phase one of the project is complete, according to Sembcorp Development.

         The park's masterplan, which was unveiled at the ceremony, features industrial clusters such as a Fashion City, Food City, Furniture Hub and Building Materials Zone.

         Each cluster will target companies involved in various stages of the value chain. These include processing of raw materials, design, manufacture and marketing of products. The industrial park will also have commercial facilities and residential space.

         So far, 20 companies have committed to invest in the park and two are from Singapore. They will invest about IDR4.3 trillion (S$450 million). About 30 hectares have been set aside for the companies, Singapore's channelnewsasia (CAN) reported.

         The integrated Kendal Industrial Park (KIK) in Central Java is expected to absorb an investment worth Rp200 trillion and a total of 500 thousand workers, according to an Indonesian minister.

         "The value of the KIK development in the first stage is estimated to reach Rp7 trillion with a total land area of 860 hectares. Its development is expected to be finished in five years," Industry Minister Airlangga Hartarto said in a written statement.

         The KIK development is scheduled to be carried out in three stages and designed as a labor intensive industry site with export oriented business, Airlangga said.

         Singaporean company PT Tat Wai Industries has been in operation in the KIK area since last August. It developed a factory of 10 thousand square meters on the site with an investment of Rp65 billion. It produces furniture such as desks, chairs and cupboards.

         Now, the company has employed 75 workers of which 80 percent are local workers from Kendal.

         The development of the KIK project started eight years ago, according to Airlangga. The planning was done by the Ministry of Industry in cooperation with provincial government and the Kendal regional administration. It was an effort to accelerate equitable national industrial and economic developments.

         Singapore is an important partner of Indonesia in the trade and investment fields, President Jokowi stated during the Leaders' Retreat. Amid the global sluggish economy, Singapore's investment in Indonesia has increased significantly.

         From January to September 2016, Singapore's investment in Indonesia reached US $7.1 billion, up 44 percent compared to the same period last year.

         Both sides also discussed investment cooperation between the two countries, such as in the energy sector where energy could contribute to Indonesia's 35,000 megawatt power generating program.

         "Despite our small size, we are Indonesia's biggest foreign investor as you heard from the president. Our companies are investing in not just the Batam-Bintan-Karimun (BBK) region, but also in other parts of Indonesia, including the Kendal Industrial Park, which we will be opening this afternoon. We also reviewed the progress of our cooperation in other areas, particularly in tourism. We have agreed that increasing tourism traffic will benefit both our countries. Both countries are joint destinations which fit together. Tourists can visit both countries in one trip," Lee said in his speech.

         Last but not the least, Lee conveyed his invitation to Jokowi to visit Singapore next year.

         "As it is my turn to host the retreat. It is also a good opportunity on the 50th anniversary for us to celebrate in a proper manner, not just on economic cooperation but on cultural, social and on many other aspects of our ties which have benefited our two countries for many years," Lee stated. ***3***
(f001/INE/B003)
EDITED BY INE
18-11-2016