Indonesian Political, Business & Finance News

Kendal SEZ Drives Absorption of 1,000 Workers

| Source: CNBC Translated from Indonesian | Investment
Kendal SEZ Drives Absorption of 1,000 Workers
Image: CNBC

The government is continuously pushing for the acceleration of investment realisation, not only to boost economic growth but also to create widespread employment opportunities and drive regional economic efficiency. This is exemplified by the groundbreaking of PT Hoi Fu Paper Packaging’s factory in the Kendal Special Economic Zone (SEZ), on Saturday (2/5).

The Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, emphasised that the government fully supports the acceleration of investment realisation, which directly impacts the strengthening of national economic growth.

“In the midst of increasingly complex global conflicts and dynamics, President Prabowo Subianto has directed the government not only to support but also to actively monitor and guide investments to strengthen national economic growth. Through strengthened coordination, including investment acceleration forums, various on-the-ground obstacles can be promptly addressed, from strategic issues to raw material availability,” he stated in a written remark on Saturday (2/5/2026).

During this groundbreaking event, PT Hoi Fu Paper Packaging announced an investment value of approximately Rp1.12 trillion and projected capacity to absorb up to 1,000 workers, with about 95% being local labour. The worker absorption will be realised gradually in three phases: 300, 500, and 200 workers. The presence of this industry also has the potential to open up expanded indirect employment opportunities, particularly in supporting sectors such as logistics and SMEs.

The Regent of Kendal, Dyah Kartika Permanasari, also attended the ceremony and stated that Kendal Regency has great potential as an economic buffer area with the support of the Kendal SEZ, which continues to encourage investment inflows.

“We hope that the presence of PT Hoi Fu Paper Packaging can strengthen the local economy and open new job opportunities for the community,” she affirmed.

In line with the incoming investment, the Kendal SEZ continues to demonstrate significant performance. Up to the first quarter of 2026, the zone has recorded cumulative investments of Rp101.93 trillion with labour absorption reaching 117,941 people. This achievement has also driven Kendal Regency’s economic growth to 9.00% (year-on-year) and contributed around 24.33% to the total regional GRDP.

From an efficiency perspective, Kendal Regency’s ICOR is recorded at 3.92, reflecting that incoming investments are able to generate optimal economic output. This has also propelled economic growth and increased investment realisation in Kendal Regency to the highest in Central Java Province.

On this occasion, Deputy Coordinating Minister Susiwijono, who is also the Chairman of the National SEZ Implementing Team, explained the expansion plans for the Kendal SEZ and the importance of support from local government and related stakeholders.

“The 1,000-hectare expansion plan is being carried out because the land utilisation in the Kendal SEZ is nearly 100%. The government is also committed to continuing to encourage the provision of incentives for businesses interested in investing in the SEZ,” he said.

He emphasised the importance of support from the regency government, provincial government, and central ministries/institutions so that the expansion and development processes of the zone can run optimally and provide broader economic impacts.

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