South Korea Injects Rp429 Billion Investment into Batang Industropolis SEZ
Jakarta: The Batang Industropolis Special Economic Zone (SEZ) has successfully attracted foreign direct investment (FDI) from South Korea through the presence of PT Simone Batang Indonesia, a global manufacturing company specialising in leather-based export-oriented products.
This investment commitment was marked by the signing of the Industrial Land Utilisation Agreement (PPTI) by Indri Septa Respati, Director of Marketing and Development for Batang Industropolis SEZ, and Kim Jung Shik, President Director of PT Simone Batang Indonesia.
With an investment value of Rp429 billion, PT Simone Batang Indonesia will construct a production facility on a 8.28-hectare plot of land. The project is projected to absorb around 6,000 workers and strengthen the position of Batang Industropolis SEZ as one of Indonesia’s key export-oriented labour-intensive industrial hubs.
The influx of this investment is particularly relevant amid Indonesia’s efforts to bolster the global competitiveness of its manufacturing industry, especially in attracting relocations and expansions of international companies. Indri stated that the presence of PT Simone reflects the increasing confidence of global investors in Indonesia.
“This investment demonstrates that Indonesia, through Batang Industropolis SEZ, is increasingly viewed as an important part of the global supply chain. We see a strengthening trend where international companies are making this zone their production base for export markets,” said Indri, as quoted from a written statement on Thursday, 7 May 2026.
Indonesia Becomes a Strategic Location for Long-Term Expansion
PT Simone is a global manufacturing company established in 1987 with operations in various countries, including Vietnam and Cambodia. Globally, the company holds about 10 percent of the world market share and 30 percent of the US market, with retail sales exceeding USD 7 billion.
Kim Jung Shik described Indonesia as a strategic location for the company’s long-term expansion. “We see Indonesia as one of the future production bases in Asia,” he stated.
“Batang Industropolis SEZ offers the combination of advantages we need, from policy support and zone readiness to workforce potential,” added Kim Jung Shik.
The factory construction is scheduled to begin in the next two months, with a target completion in July 2026 and phased operations starting in July 2027.
In addition to expanding the global production base, this investment is expected to deliver direct economic impacts through increased exports and large-scale job creation.