China Becomes One of the Main Contributors to Foreign Investment in Central Java

Jakarta (ANTARA) - China remains one of the largest sources of foreign investment entering Central Java Province throughout the first quarter (Q1) of this year.

This is evidenced by the increasing number of Chinese companies from various sectors commencing their business activities in the Batang Special Economic Zone under the “Two Countries, Twin Parks” (Two Countries Twin Parks/TCTP) cooperation and other industrial zones in the province, thereby enhancing local employment opportunities.

Several analysts link this significant figure to the Batang Special Economic Zone, which is one of Indonesia’s regions under the Indonesia-China TCTP.

The realisation of investment value from Mainland China in the province reached Rp2.14 trillion over the first three months of this year, becoming the third largest source after Singapore and the Special Administrative Region (SAR) of Hong Kong, China, which recorded Rp3.33 trillion and Rp3.22 trillion respectively, as quoted from the latest statement by the Central Java Provincial Investment and One-Stop Integrated Services Agency (DPMPTSP).

In March last year, President of the Republic of Indonesia Prabowo Subianto attended the inauguration ceremony of the Batang Industropolis Special Economic Zone (KEK) in person and expressed his hope that the KEK would become Indonesia’s version of “Shenzhen City”.

Following the construction and enhancements carried out through Indonesia-China cooperation for over a year, the KEK has achieved optimisation in infrastructure, industrial and economic environment, and talent systems, attracting several prestigious companies in downstream industry, new energy, and technology to establish operations there, including several Chinese businesses.

Official data shows that the KEK has secured investment commitments of around Rp36.4 trillion from various Chinese industrial players, which are being implemented gradually.

Industrial zones in Kendal, Central Java Province, have also become a preferred location for many Chinese investors for expansion.

In the past less than two months, there have been at least two new investments from China in this industrial zone, such as Kuka Home, which invested around Rp2.7 trillion in an export-oriented furniture factory in mid-March, and Hoifu Group, which invested around Rp1.1 trillion in a packaging factory at the beginning of this month.