Opening a factory in Indonesia, analysis of the three major industrial zones on the island of Java

When choosing a site to locate in Indonesia, it is important to understand the three main industrial zones on the island of Java.

On the island of Java, the main manufacturing belt is divided into three main areas from west to east, namely the Javan belt, the Central Java belt, and the East Java belt. Among these three belts, the Javanese belt has been developed for more than 40 years and spans 120 kilometers from east to west with Jakarta as the center. The west side has large-scale parks such as Millennium Park, Modern Zigante Park, and Xiamen Shang Zhou Park, while the east side is more centralized and contains Jababeka Park, Marongkia Park, Cinco Jotas Park, Lippo Park, etc., as well as two Chinese-invested parks, namely, the Sino-India The China-India Economic and Trade Cooperation Zone (CIETZ), and the Huaxia Happiness Park (HHP). The advantages of the Javan industrial zone are that it is mature and suitable for high-tech and high value-added industries, while the disadvantages are the high cost of land and labor, with the average price of land being more than 1,000RMB per square meter, and the minimum wage of labor being as high as 2,600RMB per square meter.

The second is the East Java Industrial Belt, East Java's capital city of Surabaya is the second largest city in Indonesia, around Surabaya are distributed parks Jipe Park, Jinfeng Park, due to the nearby deep-water wharf, so these two parks are particularly suitable for heavy chemical industries to land, Xinyi Glass, Hailiang Copper Foil, and other Chinese enterprises have chosen to locate in this area, the cost of land and manpower costs are comparable to the Yawan Industrial Belt.

Ranked third is the Central Java Industrial Zone, is Indonesia's emerging manufacturing base, the capital city of Semarang, the surrounding west to east distribution of Batang Wansinda Park, Kendall Park and JIPS Park, etc., compared with the first two industrial zones, the Central Java Industrial Zone, the cost of land and labor is more inexpensive, the average price of land in the 500-1,000 yuan, the minimum wage is as low as 1,600 yuan, so a large number of labor-intensive industries textiles, bags, footwear, furniture, etc. have chosen to locate here. The average price of land is 500-1000 RMB and the minimum wage is as low as 1600 RMB, so a large number of labor-intensive industries such as textile, bags, shoes, furniture, etc. have chosen to set up their operations here.

In the past year, Indonesia has been tightening the import of finished products, and recently even opened a six-month special operation to rectify illegal imports. The mode of cross-border finished product trade is becoming more and more difficult, which means that the opportunity to land and open factories and do local supply chain is getting bigger and bigger.