The Development of KIK Able to Strengthen the Relationship of Indonesia-Singapore Economic Cooperation

INDUSTRY.co.id - The development of Kendal industrial park, in Central Java, is expected to strengthen the economic cooperation relationship between Indonesia and Singapore.

"The two countries are important partners in various matters, such as trading partners, investment, tourism and other fields," Foreign Affairs Minister Retno Marsudi said in Jakarta on Monday (14/11).

This he conveyed at a press conference with Minister of Industry, Airlangga Hartarto, before the inauguration of Kendal industrial park, in Semarang, Central Java. In the field of trade, Singapore became Indonesia's third largest partner with a contribution of more than 30 billion US dollars in 2015.

"Meanwhile, for investment, Singapore became the number one foreign partner in Indonesia with a value of 5.9 billion US dollars through 3,012 projects," said Retno.

In response, CEO of Sembcorp Development, Kelvin Teo, continues to encourage the Indonesian government to respond proactively inauguration of KIK for economic development of both countries.

"We appeal to the Indonesian government to prepare a comprehensive and world-class infrastructure development support specifically for the new Singapore city concept in central Java," he said.

On the same occasion, President Director of PT Jababeka Tbk, Budianto Liman, said that KIK is a joint venture between PT Jababeka Tbk and Sembcorp Development Indonesia Pte. Ltd., a subsidiary of Sembawang Development Ltd from Singapore.

"The development of KIK will take place in several stages. The first phase of development covering an Industrial Park of ​​860 Hectare has started from a total area of ​​2,700 Hectare, "he explained.

Budianto hopes that the whole area in the first phase can be completed in the next five years. Targeted investment reaches Rp. 160-200 trillion and create employment of 500 thousand people.

According to Liman, the development of KIK is expected to increase economic growth in Central Java with increasing industrial activity in the region.

"Through the development of this integrated area, we are optimistic that the total number of Indonesian industries built in Central Java will increase from the current five percent to around 10 percent in the next five years," he said.

He continued, so far the first stage of KIK development has been built basic infrastructure such as roads, drainage, power plants, water treatment, wastewater treatment and gas supply facilities.

"KIK has an Industrial Park by the Bay tagline because it is located on the beach, right in the middle of the economic growth corridor Jakarta-Semarang-Surabaya," he said.