Industry Minister: JIIPE Helps Boost Gresik’s Economic Activity
Jakarta (ANTARA) – Industry Minister Muhammad Sarmuji says the Java Integrated Industrial and Ports Estate (JIIPE) in Gresik regency, East Java, is contributing to the local economy by employing 70 per cent of its workforce from the local area.
He said JIIPE could boost economic activity among communities around the estate and support economic growth in Gresik and the wider East Java region.
“Gresik is benefiting considerably from JIIPE. It has absorbed workers, and economic activity has naturally grown. Certain areas are expanding, and their economies are bound to receive a boost from an industrial estate,” Sarmuji said in a statement received in Jakarta on Friday.
He said efforts to explain the benefits of industrial estates should continue so that the public understands how industrial investment contributes to regional economies.
During a visit to JIIPE, Sarmuji was briefed on the estate’s development, infrastructure and utilities, and inspected downstream processing facilities in metals, manufacturing supporting renewable energy, and the chemical industry.
Bambang Soetiono, president director of PT Berkah Kawasan Manyar Sejahtera (BKMS), which manages JIIPE, said the integrated industrial estate was being developed with the support of a deep-sea port and facilities to meet industrial operations and logistics needs.
JIIPE covers 1,761 hectares of industrial land, 406 hectares for its port and 800 hectares for residential use. To date, about 60 per cent of the industrial land has been sold.
Companies that have invested in JIIPE include PT Freeport Indonesia, Xinyi, Hailiang, Golden Elephant (GEABH) and ANTAM.
Bambang said the estate’s comprehensive infrastructure and utilities, together with access to a deep-sea port, gave it an advantage in supporting logistics efficiency and industrial development.
“JIIPE’s strengths are its comprehensive infrastructure and utilities, as well as its deep water, which makes things easier for industry. We are also building a gas-fired power plant supplied by PGN and plan to build a solar power plant,” he said.
JIIPE’s downstream industry ecosystem includes copper processing and precious-metal refining, the manufacture of copper-based products, and the development of photovoltaic glass manufacturing to support the solar energy supply chain. Investment in the chemical sector is also expanding processing activities at the estate.
The development of integrated industrial estates is expected to strengthen manufacturing, increase employment and drive economic growth by linking industrial investment with regional economies.