SEMARANG, Indonesia: Singapore Prime Minister Lee Hsien Loong and Indonesian President Joko Widodo officially opened Kendal Industrial Park in Semarang, Central Java on Monday (Nov 14), as part of the leaders’ retreat.
The 2,700-hectare park, which is also known as Park by the Bay, is a joint development between Singapore’s Sembcorp Development and Indonesia’s industrial estate developer PT Jababeka.
Speaking at the opening, Mr Lee said the project is a win-win outcome for both countries. "Our economies are closely intertwined. If Indonesia does well, Singapore will also do well. This is why Singapore wants Indonesia to succeed," said Mr Lee.
PM Lee and President Joko Widodo officially open Kendal Industrial Park in Semarang, Indonesia. (Photo: Lim Jia Qi)
In a press statement, Sembcorp Development said the project is set to form the economic engine to draw investment and create jobs for a region which Indonesia has identified for development. About 100,000 jobs are expected to be created by 2021, when phase one of the project is complete.
The park’s masterplan, which was unveiled at the ceremony, features industrial clusters such as a Fashion City, Food City, Furniture Hub and Building Materials Zone.
Each cluster will target companies involved in various stages of the value chain. These include processing of raw materials, design, manufacture and marketing of products. The industrial park will also have commercial facilities and residential space.
“Park by the Bay supports Indonesia’s goal to accelerate the development of Central Java,” said Sembcorp Development, adding that a number of major infrastructure works are in the pipeline.
These include upgrading Central Java’s Ahmad Yani International Airport and the Pantura Highway that connects Central Java to Jakarta, installing a double-track railway line connecting Jakarta, Kendal and Surabaya.
A natural gas pipeline will also run from Cirebon in West Java, to Semarang by 2020, said the developer.
To get companies to invest in the park, Sembcorp said the Indonesian government has also implemented a service to issue investment licences within three hours of submission.
So far, 20 companies have committed to invest in the park and two are from Singapore. They will invest about IDR4.3 trillion (S$450 million). About 30 hectares have been set aside for the companies and some 4,000 jobs will be created.
Singapore furniture manufacturer Tat Wai Industries is among the first few that has started operations.
About nine companies are expected to start building their factories on the site this year.