CFLD Develop a Strategic Industrial Area which is Supported by Seven New Infrastructures

INDUSTRY.co.id - Jakarta - On the occasion of Segye ASEAN Forum 2020, CFLD Indonesia, which is part of CFLD, a world-class development company working from upstream to downstream from planning, building and operating large-scale industrial cities, shows its support for the partnership between the Indonesian and Korean manufacturing industries.

Segye ASEAN Forum 2020 which is a series of Indonesian and Korean Manufacturing Industry Partnership forum events held, was attended virtually by more than 500 executives from well-known manufacturing companies in Korea.

On this occasion, CFLD participated as a speaker who discussed further the development of infrastructure in Greater Jakarta and the role of Jakarta as an economic center.

The event, which was organized by Segye Ilbo, one of the main media in Korea, aims to provide business people with insight into the economic partnership between Indonesia and Korea, as well as discuss Indonesia's national development plans related to businesses from Korea including the new capital city and major infrastructure development in Jabodetabek.

The event was virtually attended by Agus Gumiwang Kartasasmita as the Minister of Industry of the Republic of Indonesia, Suharso Monoarfa as the Minister of National Development Planning of the Republic of Indonesia, also Sung Yun-mo, the Minister of Trade, Industry and Energy (MOTIE) of the Republic of Korea, and Kim Hyun-mee, the Minister of Land, Infrastructure and Transport (MOLIT) of the Republic of Korea.

"Through this Segye ASEAN Forum 2020, we hope to provide a forum for development practitioners, investors and businesspeople to be able to exchange ideas. Various discussion materials from experts and practitioners that raise research, insights, smart practices, learning, and relevant experiences for Indonesia. Through various interactive sessions, this forum is expected to provide new thoughts and approaches in facing various business challenges, investment and major infrastructure development in Indonesia. In addition, we also hope to build partnerships between the Indonesian and Korean manufacturing industries and a business investment foundation to become sturdier." Said the representative from the Segye Ilbo.

In an interactive discussion session, CFLD describes the data of direct investment by South Korea in Indonesia is in the 5th position from 2017 to Q2 2020, where 60 percent of this investment is located in Greater Jakarta.

The investment covers various industrial sectors, with the top five in the electronics and medical devices at 29 percent, followed by the textile, pharmaceutical, electrical, and metal industries. South Korean investment has also influenced the acceleration of the handling of COVID -19 in Indonesia, especially in the health sector.

“The involvement of the pharmaceutical companies from Indonesia and South Korea in terms of COVID -19 vaccine development is showing tremendous progress. We are hoping not only it will help both countries combating COVID but will also create a stronger cooperation in the future. One of Indonesia government’s supports that has been provided to make business world can still operate in the midst of a pandemic is the issuance of an Operational Permit for Mobility and Industrial Activities (or Izin Operasional Mobilitas dan Kegiatan Industri/IOMKI) at the beginning of the second quarter of 2020. The IOMKI policy during the past few months has helped the Indonesian economy to resist an inevitable downturn and produce a rise and rebound. This policy will ensure the manufacturing industry to be competitive amid the COVID -19 pandemic.” said Agus Gumiwang Kartasasmita, as the Indonesian Minister of Industry. In addition, more than 60 thousand expatriates from South Korea live and working in Indonesia, making it one of the largest foreign communities in Indonesia.

“The pandemic has put big challenges for all nations including our countries which emphasizes the importance of international cooperation and solidarity to address its impact in all the sectors. We all may agree that cooperation and partnership will proof to be the most effective in this time of need. Having said so, I will come with recommendation for all stakeholders to enhance our cooperation in the future, particularly, in investment cooperation.” Said Suharso Monoarfa, the Minister of National Development Planning of the Republic of Indonesia told.

Indonesia is the largest economy in Southeast Asia and with top three GDP growth in 2016-2018 among the G20 countries, which is why many investors regard Indonesia as a country with great potential. Investment regulations in Indonesia that have moved towards a paperless license are made easier with the BKPM-Online Single Submission.

In addition, there are Fiscal Incentives to encourage the manufacturing industry, increase investment and economic progress and also low tariffs for the gas industry. Coupled with the enactment of the Omnibus Law or the Job Creation Law in Indonesia, which has widened opportunities to invest in Indonesia.

Indonesia has also prepared some steps for post-pandemic economic recovery.

"Reactivating the engine of the economy is needed to create jobs for workers who have lost their jobs and drive other related businesses, and we have prepared seven steps, including Investment Acceleration, Industry and Trade Recovery, Financial Sector Development, Strengthening National Health System, Expansion of Social Protection Programs, Infrastructure Development, and Human Resources Development.” added Suharso Monoarfa.

One of the projects developed by CFLD, Karawang New Industry City (KNIC) is located in Karawang which is connected to Greater Jakarta by the development of 7 (seven) major national strategic infrastructure built by Indonesian Government.

"There are a lot of interests from investors to invest in Indonesia especially in surrounding area of Jakarta. We are very optimistic about our project in Karawang because the area is already developed as center of manufacturing in Indonesia. Later, Karawang New Industry City (KNIC) will be the best place to invest, completed with world-class infrastructure such as electricity substations, wastewater processing plants, water processing plants for clean water supply, and other infrastructure that will help your business in Indonesia grow." said the representative from the CFLD.

The major infrastructure which under development progress are the construction of the Jakarta- Cikampek South 2 Toll Road; the construction of the Jakarta Outer Ring Road; the construction of the station for the Jakarta-Bandung High Speed Railway which one of the stations will be in the Karawang Station nearby KNIC.

The next infrastructure is MRT phase 2, LRT phase 1, and the Commuter Line which will extend its route to Karawang; then Patimban Deep Seaport in Subang, West Java; and the other two developments that have been in operation are the Trans-Java Toll Road which has been in operation since end 2018 and Kertajati Airport in Majalengka, West Java which has been opened since July 2019.

Industry contribution is one of the most important factors driving the manufacturing industry sector. With the development of industrial estates in the area around the center of the economy, it is expected to have positive effects on the economy, increase industrial productivity, and attract more foreign investors to Indonesia.