“Because Central Java’s contribution to national economy is still around 9.7 percent or behind West Java with 27 percent and East Java with 18 percent,” Industry Minister Airlangga Hartarto said in a written statement in Jakarta on Monday, November 14, 2016.
Therefore, Industry Ministry and Central Java provincial government have initiated the development of KIK by setting up economic master plan and strategic plan of Central Java to establish an industry-based special economic zone.
KIK is a joint venture between PT Jababeka Tbk and Sembcorp Development Indonesia Pte. Ltd., a subsidiary of Singapore-based Sembawang Development Ltd.
Airlangga believes that KIK will improve Kendal and Central Java’s economy through employment opportunities, both directly and indirectly, the establishment of new markets, and set up new towns as the centers of other activities.
“There are currently 20 companies who have expressed their commitment to invest in KIK, comprising investors form Japan, Malaysia, Singapore and Indonesia,” he said, adding that those companies will be able to absorb 4,035 workers with land occupancy of 31 hectares and investment value of Rp4.3 trillion.