Indonesian Political, Business & Finance News

PT Simone Batang Indonesia Invests Rp 429 Billion in Batang SEZ

| | Source: BABELINSIGHT.ID Translated from Indonesian | Investment
PT Simone Batang Indonesia Invests Rp 429 Billion in Batang SEZ
Image: BABELINSIGHT.ID

The Batang Industropolis Special Economic Zone (SEZ) has successfully attracted foreign direct investment (FDI) from South Korea through PT Simone Batang Indonesia. This global manufacturing company, focused on leather-based products, strengthens the zone’s position as a centre for export-oriented labour-intensive industries.

According to Money, the investment allocated for this project amounts to Rp 429 billion. The production facility will occupy a land area of 8.28 hectares in the Batang Industropolis SEZ, which has recorded significant land absorption growth until early 2026.

This expansion is predicted to create substantial economic opportunities for the local community, with projections for absorbing around 6,000 workers. The presence of this company represents a strategic step in enhancing the competitiveness of national manufacturing in international markets.

Indri Septa Respati, Director of Marketing and Development for Batang Industropolis SEZ, views the influx of foreign capital as concrete evidence of international investors’ trust in Indonesia’s business climate.

“This investment demonstrates that Indonesia, through Batang Industropolis SEZ, is increasingly seen as an important part of the global supply chain. We observe a strengthening trend where international companies position this zone as a production base for export markets,” said Indri.

PT Simone Batang Indonesia itself is a long-standing player in the manufacturing industry, operating since 1987. The company has an extensive operational network in Asia, including Vietnam and Cambodia, and holds a dominant market share.

Globally, the entity commands about 10 per cent of the world market share and 30 per cent of the US market. The retail value of the products produced collectively exceeds 7 billion US dollars.

Target Operations and Construction Plans

Kim Jung Shik, President Director of PT Simone Batang Indonesia, revealed that the geographical position and infrastructure support were the main reasons for choosing Indonesia as a long-term expansion location.

“We see Indonesia as one of the future production bases in Asia. Batang Industropolis SEZ provides the combination of advantages we need, from policy support and zone readiness to workforce potential,” said Kim.

The factory construction process is planned to begin in the next two months. Management targets the physical construction of the building to be fully completed by July 2026.

Following the completion of the construction phase, factory operations will be rolled out gradually starting from July 2027. This investment is believed to deliver immediate economic impacts through increased national export volumes and the creation of jobs on a massive scale.

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