Investment Opportunities in Batang Industrial Park

The Advantages of Investing in Batang Industrial Park

  • InCorp Editorial Team
  • 20 May 2024
  • 5 minute reading time

Indonesia’s Kawasan Industri Terpadu (KIT) Batang, also known as Batang Industrial Park, is rapidly emerging as a hub for industry and commerce. It attracts major investments and boasts a strategic location.

This article will explore the investment opportunities available in KIT Batang, highlighting the factors contributing to its success and the potential benefits for investors.

Why Invest in Batang Industrial Park?

The Batang Industrial Park (KIT) is one of 8 Industrial Zones designated as National Strategic Projects (PSN) in Indonesia that are operational.

As an integrated industrial zone focusing on petrochemical and energy-based industries with an innovative and sustainable concept, KIT Batang will be at the forefront of industrial investment climate development in Indonesia.

PT Batang Integrated Industrial Area, a consortium of State-Owned Enterprises, manages KIT Batang. This consortium comprises PT Pembangunan Perumahan, PT Kawasan Industri Wijaya Kusuma, PT Perkebunan Nusantara (PTPN) IX, and Batang Regional Public Company (Perumda). 

Built on a 4,300-hectare plot, KIT Batang has a total investment value of IDR 13.342 trillion. It was ready for operation in 2024. Acting as a pilot project for industrial zones, KIT Batang adopts The Smart & Sustainable Industrial Estate concept, in which tenants must have advanced industrial technology and environmentally friendly management practices.

Singaporean Firm Invests USD 25M in Batang Industrial Park

KIT Batang, also called Grand Batang City, recently announced that it secured a USD 25 million investment from neighboring Singapore. Sampoerna Kayoe, a wood pellet producer based in Singapore, made this investment.

Sampoerna Kayoe intends to construct a plant spanning 5.2 hectares of land within the Batang Industrial Park. The plant is projected to employ 173 workers, with approximately 68% recruited locally. 

This agreement marks the first investment deal secured by the industrial zone this year. The memorandum of understanding (MoU) for the wood pellet investment was signed by both parties last week.

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Key Investment Sectors in Batang Industrial Park

Investment Opportunities in Batang Industrial Park

The priority industry development, including KIT Batang, aligns with the National Long-Term Development Plan (RPJPN) in three phases:

Phase I (2015-2019)

Enhancing the value of natural resources in agro, mineral, and oil-and-gas industries, followed by selective advancement of supporting and core industries. This involves developing skilled human resources and improving technological expertise.

Phase II (2020-2024)

Aiming for competitiveness and environmental sustainability by bolstering industrial structures, technology mastery, and employing qualified personnel.

Phase III (2025-2035)

Striving to establish Indonesia as a robust industrial nation with a strong domestic industrial framework, global competitiveness, and reliance on innovation and technology.

Moreover, increased economic activity in Central Java has led to a growing need for production facilities, motivating Intiland to re-enter the industrial park sector with Batang Industrial Park in Batang, Central Java.

This park aims to drive additional regional development by providing essential infrastructure to attract businesses of various sizes. Some key sectors include:

  • Manufacturing of Glass
  • Ceramics
  • Pipes
  • Medical Devices
  • Batteries for Electric Vehicles (EVs)

According to Ministry of Industry records, total investments in phase 1 amount to around USD 321 million or approximately IDR 5 trillion, and the target employment is 6,000 people. 

Government Support and Incentives

With a foreign investment totaling USD 613,150,000, the government has prioritized industrial infrastructure development, investing in Indonesia’s Batang Industrial Park, which is highly lucrative for entrepreneurs.

Advanced Industrial Facilities

Batang Industrial Park boasts a range of superior industrial facilities aiming to bolster business success.

  • Stable electricity supply
  • Reliable water access
  • Efficient telecommunications
  • Effective wastewater treatment systems
  • Streamlined permit processing centers
  • Banking services
  • Recreational amenities
  • 24-hour security
  • Fire safety measures
  • Medical services

Seamless Connectivity

Located strategically in the heart of Java Island, Batang Industrial Park offers easy access to transportation networks. Logistics to airports and ports are easily accessible, enhancing the value of investing in Indonesia.

  • 8 km from the Semarang-Batang toll gate (KM 348).
  • 25 km from Pekalongan Train Station.
  • 80 km from Ahmad Yani International Airport.
  • 85 km from Port Tanjung Emas.
  • 160 km from Kertajati International Airport.
  • 260 km from Kertajati Patimban Port.

Competitive Minimum Wages

Batang boasts some of the most competitive minimum wages in Central Java, set at IDR—2,132,535 in 2022.

By investing in Indonesia, particularly in Batang Industrial Park, entrepreneurs can benefit from these competitive wages, which can lead to increased production efficiency.

Sustainability at Its Core

Batang Industrial City is developed and operated with a strong emphasis on sustainability.

The park adheres to green building concepts, implements clean industrial processes, and employs stringent water management systems. With lush greenery and proximity to the sea, the industrial area promotes a healthier work environment with improved air quality.

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Start Investing in Batang Industrial Park with InCorp

Investing in the Batang Industrial Park (KIT) presents an attractive opportunity, given the abundance of supporting facilities and strong government support. 

With the prospect of tapping into this promising industrial hub, businesses can find ample resources and infrastructure to foster growth and development. To facilitate the investment process further, InCorp offers company registration and investor KITAS services.

These services streamline the registration process and ensure compliance with regulatory requirements, enabling investors to navigate the intricacies of operating operations efficiently and effectively.

Fill out the form below to kickstart your journey toward success in Batang Industrial Park.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

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We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

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Frequent Asked Questions

As an investor, you are required to have a minimum investment of IDR 1 billion in invested shares to be eligible for an investor KITAS.

An Index 313 Investor KITAS will allow its holder to stay in Indonesia for a year, while an Index 314 Investor KITAS allows for a 2 year stay.

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.

It should take between 30 to 45 days.