Indonesia Boosts Investment: Jokowi Unveils Batang Industrial Park's Expansion

Indonesian President Joko Widodo has launched the second phase of an industrial complex in Central Java's Batang industrial park, aimed at attracting multinational companies to reduce dependency on Chinese supply chains. The expansion includes additional land and incentives for investors, with major commitments from companies like LG Energy Solution.

Indonesian President Joko Widodo on Friday inaugurated the second phase of the Batang industrial complex in Central Java, aiming to lure global investors seeking alternatives to Chinese supply chains. Currently, nearly 20 companies occupy about 10% of the park's 4,300 hectares.

Widodo, popularly known as Jokowi, revealed that investments totaling 14 trillion rupiah ($860 million) have been made thus far. An additional 400 hectares will now be available for investors, aimed at generating more manufacturing jobs.

"We must open as many job opportunities as possible for our citizens," Jokowi emphasized. The Batang park offers tax breaks for machinery imports as an incentive for companies to set up factories.

LG Energy Solution is slated to begin cathode production by September, a crucial component for electric vehicle batteries. The company plans to build a $2.4 billion factory within the park, which will eventually supply a major battery cell plant in Karawang, West Java.

This battery cell plant, valued at $3.6 billion, is expected to contribute significantly to Indonesia's growing electric vehicle industry. ($1 = 16,285.0000 rupiah)

(With inputs from agencies.)