Expansion to Batang SEZ: South Korean Company Invests Rp429 Billion, Set to Create Thousands of Jobs
The Batang Industrial SEZ continues to demonstrate its appeal as a national strategic industrial zone with the entry of foreign direct investment (FDI) from South Korea via PT Simone Batang Indonesia.
This Rp429 billion investment is projected to become one of the new drivers of export-based manufacturing industry growth in Indonesia, while also creating thousands of new jobs in Batang Regency and surrounding areas.
The investment commitment was marked by the signing of the Industrial Land Utilisation Agreement (PPTI) by the Marketing and Development Director of Batang Industrial SEZ, Indri Septa Respati, and the President Director of PT Simone Batang Indonesia, Kim Jung Shik, in the Ballroom of the Batang Industrial SEZ Management Office on Friday (8/5/26).
In the project, PT Simone Batang Indonesia will build production facilities on a 8.28-hectare plot of land. The presence of this new factory is estimated to absorb around 6,000 workers.
It is thus hoped to provide significant economic impacts for the local community, particularly in increasing employment opportunities and growth in the supporting industrial sector in the Batang region.
The entry of investment from this global South Korean company also serves as a positive signal for Indonesia’s investment climate. Amid competition between countries to attract industrial relocations and international manufacturing expansions, the Batang Industrial SEZ is considered successful in offering various competitive advantages that can attract global investors.
The Marketing and Development Director of Batang Industrial SEZ, Indri Septa Respati, stated that the presence of PT Simone reflects the increasing trust from the international community in Indonesia as an important part of the global supply chain.
“The trend of foreign companies making industrial zones in Indonesia as export production bases continues to increase in recent years,” said Indri.
Indri added that the Batang Industrial SEZ not only offers ready-to-use industrial zone infrastructure. “But also government policy support that is considered able to provide investment certainty for global industry players,” she emphasised.
Meanwhile, the President Director of PT Simone Batang Indonesia, Kim Jung Shik, stated that the combination of regulatory support, industrial zone readiness, and workforce potential are the main factors driving the company to choose Batang as the location for its new expansion.
It is known that PT Simone itself is a global manufacturing company established since 1987 and operating in the leather product sector for the international market. The company has operational networks in various countries, including Vietnam and Cambodia.
Globally, PT Simone controls around 10 percent of the world market share and about 30 percent of the US market, with retail value exceeding USD 7 billion.
The construction of the production facility is scheduled to begin in two months’ time, with a target completion in July 2026. After that, production operations will be carried out gradually starting from July 2027.
The presence of this investment is expected not only to strengthen the position of Batang Industrial SEZ as a national manufacturing industrial centre, but also to increase Indonesia’s export value, expand technology transfer, and create multiplier effects for the regional economy through growth in supporting businesses, logistics, and other service sectors.