Batang Industrial Zone Becomes Popular Area for Relocation of Chinese Enterprises
The Integrated Industrial Zone (KIT Batang) in Batang Regency, Central Java, is actively embracing the trend of Chinese factories relocating to Indonesia.The director said that KIT Batang aims to be a strategic area to support the transfer of foreign investment to Indonesia, and that its infrastructure and land preparation have met the criteria. Chinese investors have been entering the region since the second half of 2024, and by the end of 2024 KIT Batang had signed land use agreements with seven industrial tenants from China covering 162.2 hectares of land, and two Chinese tenants using existing factory buildings. The Chinese tenants are in the leather, steel, and medical equipment industries, with an estimated total investment of 25.89 trillion rupiah.KIT Batang has adopted a number of strategies to promote the sale of industrial land, including the provision of international-standard infrastructure, competitive pricing and a grace period of up to five years, one-stop services, and a bid to become a special economic zone in 2025 to provide financial and non-financial incentives, as well as to actively build an integrated industrial ecosystem with global partners. It is also actively building an integrated industrial ecosystem and establishing strategic relationships with global partners, and is expected to become a major destination for global investors relocating their factories.