The Fujian Provincial Government plans to invest more in Central Java Province. The Fujian Provincial Government plans to build an energy factory on a 200-hectare plot of land within the Batang Integrated Industrial Park.
The cooperation agreement was signed during the 20th anniversary of the establishment of sister-province relations between Central Java and Fujian at Ghradhika Bhakti Praja on Wednesday, May 10, 2023.
President Director of Batang Integrated Industrial Park Ngurah Wirawan said that the factory construction would begin this year. “Next year, several factories will hopefully be operational because they only need to relocate, make the buildings, and relocate the machines. I hope it will be quick,” he said.
Furthermore, Ngurah explained that the project would cost approximately IDR 1.5 trillion for a lease period of 80 years on 200 hectares of land. Therefore, the total investment value for the project is estimated to reach IDR 4 to 5 trillion.
It’s worth noting that the Batang Integrated Industrial Park spans on an area of 4,300 hectares. Meanwhile, the land that Fujian asked for accounts for a quarter of the total land in the industrial park.
Central Java governor Ganjar Pranowo said that he would adjust the local educational curriculum to match relevant industrial requirements so that the local workers could be absorbed by these factories.
“We will prepare skilled laborers to fill the posts there, not only for manual labor, but also middle and upper-class [jobs],” Ganjar said.
China’s Fujian – Indonesia partnership
The Fujian province’s investment in Central Java is part of the “Two Countries, Twin Parks” project within China’s Belt and Road Initiative (BRI) and Indonesia’s Vision for the Global Maritime Fulcrum.
In this project, China designated Yuanhong Investment Zone in Fuqing, Fuzhou, Fujian Province as the Chinese park, and Indonesia based on “one park, multiple estates” scheme, designated the Bintan Industrial Estate, Aviarna Industrial Estate, and Batang Industrial Estate as the Indonesian parks.
The Batang Integrated Industrial Park itself is designated as an investment destination, especially for those trying to relocate factories from China, South Korea, Japan, and European countries.
So far, there are already several factories in Batang Integrated Industrial Park owned by several foreign companies, including KCC from South Korea, Yin Kwan from Taiwan, RKI from India, Wavin from the Netherlands, and Window Shutter from England.
