ASIATODAY.ID, JAKARTA – Slowly but surely, investment flows in the Java Integrated Industrial and Ports Estate (JIIPE) have continued to flow since it was designated as a Special Economic Zone (KEK) in Gresik, East Java.
In the Gresik SEZ, which is a national strategic project (PSN), there are two entities in it, namely PT Berkah Kawasan Manyar Sejahtera (BKMS) as the developer and manager of the industrial area (development and management business entity) which is a joint venture between PT Pelindo (Persero) with PT AKR Corporindo Tbk. with an ownership composition of 40% and 60%. Another entity is PT PT Berlian Manyar Sejahtera (BMS) as the manager of the port area (port business entity) with a composition of 60% and 40%.
Before October 1 2021, when four port management companies merged to become PT Pelindo (Persero), the two companies were affiliates of PT Pelindo III, while residential areas were developed and managed directly by PT AKR Surabaya Land Corporindo.
According to the Director of HR and Logistics of PT BKMS Agung P. Guritno, the Indonesian Government has targeted foreign investment in JIIPE to reach US$ 16 billion.
“So far, since it was designated as a KEK, investment entering JIIPE has reached around IDR 52 trillion and will continue to increase along with regional development,” he explained in a press release, Friday (10/11/2023).
Agung is optimistic that the targets set by the government will be met because of the various facilities provided by the government and industrial areas, especially connectivity between areas around Gresik and with the port.
Achieving the target begins with investment in the PT Freeport Indonesia smelter, which is one of the leading industries at JIIPE.
As part of the government’s industrial downstream program, Freeport became JIIPE’s anchor tenant with an area of 100 hectares. By the end of August 2023, the directors of PT Freeport Indonesia told the media that construction of the factory had reached 76%.
Freeport is rushing to fulfill President Joko Widodo’s request that this factory be operational by May 2024. The Freeport smelter factory, which was built with an investment of US$ 3 billion, is one of 21 companies that have joined JIIPE.
Since JIIPE was confirmed as a special economic zone, five large tenants have joined and it is hoped that this will stimulate further interest from foreign investors to invest in the Gresik KEK.
Built in 2012, the JIIPE Industrial Area was officially designated as a KEK through Government Regulation (PP) No. 71 of 2021 dated 28 June 2021 concerning the Gresik Special Economic Zone, with business activities consisting of production and processing; logistics and distribution; research, digital economy, technology development; and energy development supported by industry 4.0.
This area, with a total area of 3,000 hectares, consists of the development of an industrial area of 1,761 hectares and a port area of 406 hectares, where both areas are SEZs supported by a residential area of 800 hectares with various clusters, namely metal, electronic, chemical, energy, support. , and export-oriented logistics, the area integrated with the deep sea port has multipurpose dock facilities covering an area of 500X50 meters, with a pier length of 1,000 m and supported by a sea depth of up to -14 LWS, JIIPE port has the capacity to accommodate ships up to 100,000 DWT.
The JIIPE area is not only integrated with the port, but also has toll access, namely the Surabaya-Manyar Toll Road and the Krian-Legundi-Bunder-Manyar (KLBM) Toll Road which are currently in the completion stage of the Bunder-Manyar section, which will later be integrated with the KLBM Toll Road section. Trans Java and has direct access from the area.
“The distance from JIIPE to the Surabaya-Manyar toll gate is only three kilometers which is connected to the provincial road known as Jalan Daendels,” said PT BKMS HR and Logistics Director Agung P. Guritno, at the end of last October.
The district and provincial governments have completed part of the widening of the provincial road which is one of the access points to JIIPE.
“Only access to the Bunder-Manyar Toll Road is still in the completion stage,” added Agung.
Later, this 9.39 kilometer long project will have direct toll gate access from JIIPE. Not only road access and various infrastructure such as water, gas and electricity networks that have been and are being built at JIIPE. The government also provides various one-stop tax and licensing facilities through KEK administrators. (AT Network)
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