Minister Airlangga: Development of Industrial Zones Should be Accompanied by Polytechnic Establishment

INDUSTRY.co.id - Jakarta- Industrial estate development needs to be accompanied by the provision of skilled human resources (HR) skilled according to industry needs. Therefore, it is necessary to establish vocational schools in several industrial areas such as Polytechnic of Morowali, Central Sulawesi and the Academy of Metal Industry Community in Bantaeng, South Sulawesi.

This was endorsed by Minister of Industry(Menperin), Airlangga Hartarto during his meeting with Singapore Prime Minister Lee Hsien Loong in Singapore

"This year, we will open the furniture industry polytechnic in Kendal, Central Java and in 2018 the Ministry of Industry will facilitate the development of supporting polytechnics in Dumai industrial area and Batu Licin industrial area," said Airlangga through his written statement in Jakarta (11 / 9/2017).

On that occasion, the Minister of Industry also expressed his appreciation and gratitude to the Government of Singapore for the successful running of the Leaders Retreat in the framework of the 50th anniversary of Indonesia-Singapore diplomatic relations.

"Some points are also discussed, among others, the focus of efforts to revitalize the industrial area in Batam in order to accommodate high value-added processing industries, especially in the electronics, digital and MRO sectors," said Airlangga.

Airlangga mentioned that three focuses need to be developed in the current polytechnic, which is to utilize economic development with the progress of artificial intelligent, robotic, and 3D printing for modern manufacturing production line, innovation development of food, beverage and food safety products, and vocational development.

Airlangga also explained that one of the proof of synergy between Indonesian and Singapore industrial actors has been done through cooperation of PT Jababeka Tbk and Sembcorp Development Ltd in the development of Kendal Industrial Area (KIK), Central Java with international standard.

"Until August 2017, the realization of investment value in KIK has reached Rp4, 7 trillion with 33 investors from Indonesia, Singapore, Malaysia, China and Japan by absorbing 5,000 workers," he said.

KIK, which was inaugurated by President Jokowi and Singapore Prime Minister Lee Hsien Loong on November 14, 2016, is targeted to absorb the potential investment of up to Rp200 trillion and labor of 500 thousand people.

"In accordance with the commitment of President Jokowi, Singapore wants to grow together through joint projects such as in Batam and Kendal which later can be replicated in other parts of Indonesia," he said.

Menperin asserted, Singapore is the largest strategic partner and investor in Indonesia. In 2016 then, the value of investment from this Lion Country recorded reached USD9, 2 billion or above Japan and China with 5,874 projects.

Ministry of industry (Kemenperin noted, the value of Singapore's investment of 30.9 percent of total foreign investment in Indonesia in the industrial sector. This investment creates a new job opening of 126,293 people. In fact, Singapore is exploring investment opportunities in the industrial sector in areas outside Java, Airlangga said.

Therefore, he continued, Kemenperin encourage the development of Batam, Bintan, and Karimun (BBK) into Special Economic Zones to attract Singapore investors to invest their capital in the three areas, which is directly opposite the Land of the Lion.

"With the improvement of the business climate in BBK, it will again increase the investment of processing industries with high added value," he explained.
The Government of Indonesia has set up infrastructure in Batam to spur the development of the digital economy. This area will be a center for a number of creative industry players in the digital field such as startup development, web, applications, digital programs, movies and animations.

"Meanwhile, Bintan is developing an Airport and Aerospace Industry Park on an area of ​​4000 hectares," Airlangga said.

This integrated aviation area will be the most complete in Indonesia with several supporting facilities such as airports, aircraft repair facilities, flight training, and business and residential areas.