Explore Investment Potential in Batang Industropolis

Explore Business Growth in Batang Industropolis

  • InCorp Editorial Team
  • 7 May 2025
  • 5 minutes reading time

Recently, one name has emerged as a symbol of Indonesia’s ambition to become a global manufacturing and industrial powerhouse: Batang Industropolis. This bold new development is more than just another industrial park. It’s a strategic, government-backed initiative that reflects the nation’s determination to attract long-term, high-value investments.

Specifically, located in Central Java’s Batang Regency, Batang Industropolis covers over 4,300 hectares and was officially designated as a Special Economic Zone (SEZ) in March 2025. The zone is designed to be an integrated hub for industrial activities, logistics, trade, and services, offering a complete ecosystem for local and international businesses. 

What is Batang Industropolis? 

Batang Industropolis is a newly launched Special Economic Zone (SEZ) in Central Java. President Prabowo Subianto officially declared it in 2025 under Government Regulation No. 12/2025. Previously known as the Batang Integrated Industrial Zone (KIT), it spans nearly 4,300 hectares and focuses on manufacturing, logistics, and tourism. Moreover, the zone already hosts 27 companies, 7 of which are operational and creating jobs.

The zone already hosts 27 companies, 7 of which operate and create over 7,000 jobs. Foreign investors from China and South Korea have invested more than IDR 17.95 trillion; the total expected investment is set to reach IDR 60 trillion.  

Backed by the government and state-owned land, Batang offers low wages, easy permits, and no land issues. Additionally, the zone aims to transform its industrial landscape by partnering with China’s CSCEC under the TCTP program. The goal is to become Indonesia’s version of Shenzhen—an innovative and high-tech industrial hub.

Strategic Advantages of Investing in Batang Industropolis 

For investors, investing in Batang Industropolis has many benefits for local and international companies. These advantages make the investment process smoother, more cost-effective, and business-friendly; these include:

Fiscal Incentives 

Specifically, companies enjoy tax benefits, including:

  • Corporate income tax relief 
  • Exemptions on import duties and value-added tax (VAT) 
  • Special customs and excise facilities 

Non-Fiscal Incentives 

These include streamlined regulations and support for: 

  • Customs and logistics 
  • Labor and workforce policies 
  • Immigration for foreign workers (e.g., Investor KITAS) 
  • Land use and spatial planning 
  • Business permits and licensing 
  • Other government-backed facilities 

In short, with strong government backing and broad industry participation, Batang Industropolis is well on its way to becoming Indonesia’s top industrial investment hub. 

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Incentives for Investors in Batang Industropolis 

Batang Industropolis offers various tax incentives to attract and support investors, as regulated under the Minister of Finance Regulation No. 33 of 2021. Moreover, these incentives help reduce business costs and improve cash flow for companies operating within the zone. 

  • Corporate Income Tax Reduction (Tax Holiday): Full or partial income tax exemption for a set period, based on investment size and industry. 
  • Tax Allowance: Special income tax benefits for investments in specific business sectors or regions. 
  • Exemption from Value-Added Tax (VAT) and Luxury Goods Tax (LGT): No VAT or LGT is applied to eligible goods and services within the SEZ. 
  • Exemption or Suspension of Import Duties and Import Taxes (PDRI): Companies can import capital goods and raw materials without paying import duties or related taxes. 
  • Excise Exemption: Certain goods produced or imported within the SEZ are exempt from excise tax. 

As a result, these benefits make Batang Industropolis highly attractive for manufacturers, exporters, and supply chain companies looking to optimize their operations in Indonesia.

How to Start Your Business in Batang Industropolis 

Explore Investment Potential in Batang Industropolis

Setting up a business in Batang Industropolis is designed to be efficient and straightforward. Whether you’re a local entrepreneur or a foreign investor, the process is supported by a streamlined, single-window system, with substantial government backing at every stage. 

  • Plan Your Business: Choose your industry and prepare your investment plan. Batang focuses on manufacturing, logistics, and tourism. 
  • Register Your Company: Set up a legal entity—PT PMA for foreign investors or PT for local businesses.  
  • Apply for Business Permits: Use the Online Single Submission (OSS) system to quickly obtain your licenses, including your Business ID (NIB) and operational permits. 
  • Bring in Capital and Build: Once permits are approved, you can invest, start construction, and import equipment with customs and tax benefits. 
  • Hire Staff and Get Investor KITAS: Recruit local or foreign workers. Foreign investors can apply for an Investor KITAS to stay and manage the business in Indonesia. 
  • Start Operating: Begin operations and enjoy all the tax breaks, infrastructure, and ease of doing business in Batang SEZ. 

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Start Your Business in Batang Industropolis with InCorp 

Now, with its official designation as a Special Economic Zone, Batang Industropolis is quickly becoming one of Indonesia’s most promising industrial hubs. It offers the perfect blend of government support, modern infrastructure, tax benefits, and access to a skilled local workforce, all set in a prime location in Central Java.

Fortunately, setting up your business in Central Java doesn’t have to be complicated. InCorp Indonesia (an Ascentium Company) can make your entry smooth and stress-free with: 

  • Company Registration: Get professional help to establish your business quickly and thoroughly comply with local regulations. 
  • Investor KITAS: Secure your stay and manage your operations legally and effectively as a foreign investor. 

Take the next step in your expansion journey and let Batang Industropolis be the launchpad for your success by filling out the form below. 

Verified by

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Frequently Asked Questions

    To provide you with accurate pricing information for our product registration services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, don’t hesitate to contact our consultants.

    Foreign investors need to have a minimum of IDR 10 billion in authorized capital, IDR 10 billion in paid-up capital, and IDR 1 billion in personal shares for applying for Investor KITAS/ITAS in Indonesia.

    For tax purposes in Indonesia, companies must maintain their books in Rupiah, using the Indonesian language, and store them within the country. Exceptions for using USD and English in bookkeeping require prior notification to the authorities and any use of languages other than Indonesian needs approval from the Ministry of Finance.

    A newly established PMA company in Indonesia is typically provided with import facilities, tax holidays, tax allowances, or investment allowances.

    • Import facilities
      Investors in Indonesia, particularly in manufacturing, may benefit from import tax exemptions for capital goods and raw materials through the Master List Facility. The imported goods must meet specific criteria, such as not being produced locally or not meeting industry demand despite local production.
    • Tax holiday
      The government offers CIT reductions of 50% or 100% for 5–20 years for listed pioneer industries, based on investment value. After this period, a CIT reduction of 25% or 50% applies for two fiscal years. Non-listed sectors can also apply by meeting criteria demonstrating pioneer industry status.

      • Pioneer industries are industries that have a wide range of connections, provide additional value and high externalities, introduce new technologies, and have strategic value for the national economy.

    • Tax allowance
      For companies in certain designated areas or regions, the government may provide the following tax concessions:
      Net income reduction up to 30% of the amount invested, prorated at 5% annually for six years, on condition that the assets invested are retained for the same duration.
      Accelerated depreciation and/or amortisation deductions
      An extension of tax losses carried forward for a maximum of ten years
      A 10% (or lower if treaty relief is available) withholding tax rate on dividends paid to non-residents
      The applicant eligible has to meet high-level-criteria for the above tax facilities:
      High investment value or for export purposes
      High manpower absorption
      High level of local content
    • Investment allowance
      The government offers a reduction in net income of up to 60% of the investment, distributed at 5% annually over six years of commercial production, contingent upon the retention of invested assets for the same duration. To qualify, applicants must meet business line eligibility criteria and employ a minimum of 300 Indonesian workers in the project.
    • Super deduction
      This facility could be granted to certain businesses, such as:
      60% reduction in net income of the amount of tangible fixed assets invested for labor-intensive industries, distributed throughout a certain time frame.
      Up to 200% reduction in the gross income of the amount spent for human resources development in certain competency activities.
      Up to 300% reduction in gross income of the amount spent for certain R&D activities in Indonesia.

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Disclaimer

The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. 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. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

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