Central Java Governor Ganjar Pranowo attends the groundbreaking of KCC Glass plant in Batang industrial estate in Central Java on May 20, 2021. (Photo Courtesy of Central Java Provincial Government)

C. Java Seeks to Boost Industrial Estate Development


JULY 13, 2021

Jakarta. Central Java Governor Ganjar Pranowo pledges support for the province’s industrial estate development, seeking to boost investment in the manufacturing industry and integrated agriculture sectors in one of Indonesia's most populous regions. 

Ganjar Pranowo recently took the floor of Indonesia's largest investment forum to unveil his strategy on boosting the province’s industrial estate development.


“We seek to open up new industrial zones and explore integrated agriculture. We also encourage the development of industrial estates in the hinterlands,” Ganjar told the Investor Daily Summit 2021 on Tuesday.

“And to spur investment in these industrial areas, we are working together with the Foreign Affairs Ministry. As we all know, our ambassadors are focusing on economic diplomacy at President Joko “Jokowi” Widodo’s behest.”

The provincial government is also eyeing to promote cooperation between existing industrial estates, Ganjar said.

Central Java recently launched Batang industrial estate, which has been quite a hit among global industry giants.

Batang has attracted South Korea’s KCC Glass to build Southeast Asia’s largest glass factory. South Korea’s LG Energy Solution is also seeking to build a battery plant in Batang.

“There is also a dairy brand coming in,” Ganjar said, alluding to the fast-moving consumer goods company Nestle Indonesia’s construction of a new plant over a 20-hectare land in Batang.

Central Java is home to 35 million people, 3 million more than Malaysia, and a more competitive wage structure than its more industrialized neighbors, Central Java and East Java, a condition that is ideal for new investors seeking to recruits local workers.

Still, as Batang attracted many investors, the government should be transparent regarding the arrival of foreign workers, Ganjar said. 

Without transparency, the foreign workers' arrival is likely to be subject to criticism, Ganjar warned. At the conference, Ganjar said the foreign workers entering the country are those with special skills that our domestic workers lack.

“When it comes to foreign workers, we must disclose the social factors and political communication. [We must] be transparent,” the governor added.

The arrival of foreign workers often raises concerns among domestic workers. The latter fear that the foreigners would take over the job market, particularly during the Covid-19 pandemic.