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Minister of Industry Invites South Korean Investors to Join Industrial Zones Outside Java

 

Jakarta, 07/07/2017 MoF – Minister of Industry Airlangga Hartarto invites South Korean investors to expand their businesses to industrial zones outside Java, such as in Sei Mangkei, North Sumatera and Morowali, Central Sulawesi. These industrial zones are included in the list of national strategic projects which development is therefore prioritized particularly for the development in East Indonesia.

“We are focusing on encouraging acceleration of industrial estates development outside Java as an effort to have an economic equity distribution of the national economy,” he said in the 8th Asian Leadership Conference themed Invest in Indonesia: Nation of Abundant Natural and Human Resources in Seoul, South Korea, Tuesday (04/07).

Quoted from the Ministry of Industry website, the Sei Mangkei industrial zone stands on a land with a total area of 2,002 hectares (Ha) with an investment of Rp9.5 trillion that focuses on development in the sector of CPO processing industry. The Morowali industrial zone on the other hand, is set up on a land with a total area of 1,200 Ha with an investment of around Rp49.7 trillion that is focused on development in (collocation) ferronickel industry.

He assessed that industrial zones must be interconnected and integrated so as to increase the competitiveness of industrial zones and at the same time bring some double impacts to the regional and national economy. “Industrial zones must therefore have a synergy with the local government in settling various arising problems,” he explained.

Based on the Investment Coordinating Board (BKPM) record, South Korea is the third largest investor in Indonesia. In the sector of manufacturing industry, South Korean companies contribute to 71 percent of the total investment in the last five years in the amount of USD7.5 billion. Even, their plants can hire 900 thousand laborers. (nr/dns)