Government Supports Kendal Industrial Park

INDUSTRY.co.id - The role of the industrial region towards the development of the national industrial sector is very strategic and significant. The General Directorate of Industrial Regional Development (PPI), Imam Haryono, stated that the industrial region has already contributed about 40 percent from the non-oil and gas exports and attracted investors by 60 percent from the total investors of the industrial sector as well as provided a rather big contribution towards government revenue in the form of various kinds of taxes. “As of now, the number of industrial regions in Indonesia is recorded as 74 industrial regions with a total land area reaching 30,000 hectares.

Meanwhile, regarding the breakthrough of Jababeka in establishing KIK, the government has given it great attention. As what was conveyed by the Minister of Industries, Airlangga Hartarto, he supports building KIK because there is a special textile industrial cluster, which is integrated from upstream to downstream. The Minister of Industries hopes there will be an increase in added value and textile product competitiveness in domestic and export markets.

“The Ministry of Industries spurs building KIK to improve the development and competitiveness of the textile industry and national textile products (TPT). In the industrial region, a Fashion City will be established that is integrated with an area of 100 hectares,” stated the Minister of Industries, Airlangga Hartarto, after meeting with the Director of KIK, Hyanto Wihadhi, who is also the Director of the Jababeka Group in the Ministry of Industries, Jakarta, on Monday (8/8/2016).

In the Kendal Fashion City, it will be equipped with several facilities, such as a center that provides raw materials, shopping, exhibitions, as well as research and development of textile products. “From the variety of facilities that are provided, there will be a greater absorption of the workforce,” stated Airlangga.

In Kendal, PT Jababeka Tbk plans to develop a special textile industrial region that is integrated from upstream to downstream. This region will become the first ‘fashion city’ representative project in Indonesia. The Chief Commissioner of Jababeka, Setyono Djuandi Darmono, stated that the development of this Kendal ‘fashion city’ is expected to begin in August of 2016. Afterwards, in this ‘fashion city’, various design centers and textile technology centers will be built as well as cheap textile raw materials will be provided. It is expected that a related logistical center will also be built inside it. In the first stage, this project will use a land area of 100 hectares or 3.7 percent of the total KIK land area of 2,700 hectares.

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Based on records from the Ministry of Industries (Kemenperin), the textile and textile product (TPT) industry is a labor-intensive sector that is able to absorb a workforce of 1.5 million people or up to 10.36 percent of the workforce in the industrial sector. In February 2016, this industry’s export value increased by 6.81 percent if compared to the previous period (month by month).

In Indonesia itself, textile production activities have already been integrated from upstream to downstream. Moreover, even its products are known to have good quality in the international market. “We will encourage the national TPT industry to produce non-woven products. This is part of the product diversification strategy as well as to expand the export market,” explained Airlangga.

Those non-woven products are used as material to develop toll road infrastructures, agro textiles, medical purposes, the food and beverage industry, the automotive industry, as well as other consumption manufacturing industries.

Meanwhile, Hyanto stated that building the ‘fashion city’ in KIK is an important momentum for Indonesia to show its strength in innovation and design creativity. Moreover, the rotation of fashion trends is very quick, so that its products are demanded to follow the newest market trends and have high added value.

This region will also become the first mode center example project in Indonesia. It is expected that with the ‘fashion city’, it can be supported by small and medium industries in the TPT sector. To support the creation of the industrial region, regulations will be needed to facilitate entrepreneurs. At this time, there are already five large scale industries that have entered Kendal and are in the developmental stage, which are in the fields of furniture, food, garments, and textiles. ( Nandi Nanti, Rachmat W Suryo, Robert )