Kendal Industrial Park (KIP)

Kendal Industrial Park (KIP)

Kendal Industrial Park (KIP) is a premier industrial estate located in Central Java, Indonesia, developed through a partnership between Indonesia’s PT Jababeka Tbk and Singapore’s Sembcorp Development. Spanning 2,700 hectares, KIP is designed for light and medium manufacturing industries, making it an attractive hub for businesses in electronics, automotive, textiles, and consumer goods. Its strategic location and modern infrastructure offer significant advantages for investors looking to enter Southeast Asian markets.

KIP is not just an industrial park; it is an integrated ecosystem that fosters collaboration among various sectors. The park has already attracted over 72 tenants, securing investments exceeding USD 1.7 billion, reflecting its potential for growth and profitability. With its status as a Special Economic Zone since 2019, KIP provides various fiscal incentives, enhancing its appeal to foreign investors. Kendal Industrial Park is also part of the KLIK (Kawasan Investasi Langsung Konstruksi) initiative, promoting direct construction investment.

Special Economic Zones (SEZs)

Indonesian Special Economic Zones (SEZs) are designated areas aimed at enhancing the country’s economic growth through investment and development. These zones offer various incentives to attract both domestic and foreign investors, including tax breaks, customs duties exemptions, and simplified regulatory processes.

By creating a favorable business environment, SEZs facilitate industries such as manufacturing, logistics, and tourism, thereby driving job creation and economic diversification. The government actively promotes these zones as strategic locations for businesses seeking to capitalize on Indonesia’s growing market and strategic position in Southeast Asia.

KLIK Program

The KLIK Program (Kawasan Industri dan Investasi) is an initiative by the Indonesian government aimed at promoting industrial development and attracting foreign investment in designated industrial zones. The program provides various incentives such as streamlined permitting processes, tax breaks, and improved infrastructure to facilitate business establishment and operations. KLIK is designed to enhance investment opportunities, stimulate economic growth, and position Indonesia as a competitive player in the global market.

After obtaining principal license, investor can start construction immediately while in parallel can process their construction permit

Key Features
  • Size: 2,700 hectares tailored for industrial and commercial use.
  • Infrastructure: Modern facilities including water treatment and waste management systems.
  • Accessibility: Located just a short drive from Semarang’s port and airport, ensuring seamless logistics.
  • Government Support: Backed by both Indonesian and Singaporean governments to facilitate investment.
Location

Kendal Industrial Park is situated in the Kendal district of Central Java, approximately 21 kilometers from Semarang. This central location allows for easy access to major transportation routes, including roads and ports. The government plans to enhance this accessibility further with additional infrastructure, making KIP a pivotal point for trade and manufacturing in the region.

Amenities / Location Advantage

KIP offers a wealth of amenities, including nearby restaurants, business centers, and educational institutions. The proximity to Semarang enhances its appeal, providing access to hospitals and shopping malls, thereby creating a vibrant community for workers and businesses alike.

Developer Overview
PT Jababeka Tbk

Established in 1989, PT Jababeka Tbk is the premier township developer in Indonesia, focusing on business in land development (residential, commercial, office space, etc.), infrastructure (water provision, sewage treatment, etc.), estate management, power (logistics, etc.), and hospitality (golf courses, hotels, etc.). Kota Jababeka is a 1,560-hectare industrial estate located 35 km east of Jakarta. It includes Kota Jababeka, an integrated township that also contains residential areas, commercial centers, and is home to over 1,000 multinational companies.

Sembcorp Development

Sembcorp Development is a wholly-owned subsidiary of Sembcorp Industries, a Temasek-linked company listed on the Singapore Exchange. It is a leading Asian developer with over 20 years of track record in developing integrated townships and eco-industrial parks in Indonesia, as well as in its home markets of Singapore, China, and Vietnam, including the Riau Islands and Vietnam Singapore Industrial Park.

Products and Services at Kendal Industrial Park (KIP)
  1. Industrial Land: KIP offers plots of industrial land ideal for the construction of factories or warehouses, allowing businesses to customize their operations to fit their specific needs.
  2. Ready-Built Factories: The park provides ready-to-use factory options, including semi-detached factories, terraced factories, and mixed-use buildings, catering to diverse industry requirements.
  3. Commercial Space: KIP features commercial spaces designed to meet various business needs, providing flexibility for retail, office, or service-oriented enterprises.
  4. Support Facilities: KIP is equipped with a range of facilities to support business operations, including a polytechnic for workforce development, a technology innovation center for research and development, and a testing laboratory for product validation.

 

These offerings make KIP an attractive destination for businesses looking to establish or expand their operations in a well-supported environment.

Facilities
  • Water Treatment Plant: 24,000 CMD
  • Waste Water Treatment Plant: 20,000 CMD
  • Electricity: 600 MW
  • Telecommunication: 1,080 lines
  • Gas and Solar Farm: Available
  • Right of Way (ROW): Measured in meters
Here are the reasons why you should choose Kendal Industrial Park (KIP):
  1. Special Economic Zone Benefits: As a Special Economic Zone, KIP provides numerous fiscal and non-fiscal advantages for investors. These include tax breaks, exemptions from import duties, and various immigration and employment benefits, making it an attractive investment destination.

  2. Integrated Macro Infrastructure: KIP features well-developed infrastructure, including efficient transportation networks, reliable utilities, and effective waste management systems. This strong foundation supports smooth business operations and logistics.

  3. Micro Infrastructure: Within the industrial park, you will find well-maintained facilities such as roads, drainage systems, and a robust power supply. This focus on micro infrastructure ensures that your operational needs are met efficiently.

  4. One-Stop Solutions: KIP streamlines the process for setting up and running a business. The park offers comprehensive support, including assistance with permits and administrative tasks, allowing you to focus on growth.

  5. Competitive Wages: The area boasts competitive labor costs, enabling you to manage production expenses effectively. This economic advantage is crucial for maintaining profitability.

  6. Availability of Human Resources: You will have access to a readily available pool of qualified workers in the region, ensuring that you can find the right talent to meet your business needs without delay.


Choosing Kendal Industrial Park positions you for success in a conducive environment for growth and innovation.

Tenant & Industry Analysis

KIP has attracted key tenants like Kenda Tire, LG Electronics, and PT Eclat, specializing in various sectors, including textiles and automotive parts. Nearly half of the tenants are multinational firms, showcasing KIP’s attractiveness to global investors. The focus on light and medium industries makes it a prime location for companies seeking to establish a foothold in the region.

Future Projects / Developments

KIP plans to develop additional industrial clusters and residential areas, ensuring sustained growth and attracting more investors. The park also aims to expand its logistics capabilities to support future tenants.

Investment Opportunities

KIP presents a unique opportunity for Chinese investors looking to tap into Indonesia’s burgeoning market. With significant commitments from reputable companies, the park is an ideal location for businesses aiming to expand in Southeast Asia.

Market Research

Kendal Industrial Park is positioned as a regional manufacturing hub, appealing to multinational companies from China, Taiwan, and South Korea. The park’s emphasis on labor-intensive and export-oriented industries positions it well for future growth.

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