South Korean Investor to Build Rp429 Billion Factory in Batang Special Economic Zone
Batang (ANTARA) - The Batang Industropolis Special Economic Zone (KEK) in Central Java has recorded foreign direct investment (FDI) from South Korea’s PT Simone Batang Indonesia to build a global manufacturing company based on leather products worth Rp429 billion.
Marketing and Development Director of KEK Industropolis Batang, Indri Septa Respati, in Batang on Friday, said the presence of PT Simone demonstrates the increasing confidence of global investors in Indonesia as an industrial production base.
“This investment shows that Indonesia, through the KEK Industropolis Batang, is increasingly seen as an important part of the global supply chain. We see a strengthening trend where international companies are making this zone a production base for export markets,” she said.
According to her, KEK Industropolis Batang is continuously developing as a strategic industrial zone that offers infrastructure support, licensing ease, and investment facilities for international companies.
The entry of investment from a global company like PT Simone, she said, will also have a multiplier effect on regional economic growth, including job creation and increased activity in supporting industries.
PT Simone is a global manufacturing company established in 1987 and has production networks in various countries such as Vietnam and Cambodia.
Globally, the company controls around 10 percent of the world market share and 30 percent of the US market for the products it manufactures, with a retail value of approximately USD 7 billion.
President Director of PT Simone Batang Indonesia, Kim Jung Shik, described Indonesia as one of the strategic locations for long-term manufacturing industry development in the Asian region.
“KEK Industropolis Batang has a combination of advantages that suit the company’s needs, from government policy support, industrial zone readiness, to the potential of the workforce,” he said.
The factory construction is planned to begin in the next two months, with a target completion in July 2026, followed by gradual operations starting in July 2027.