Indonesian President Joko Widodo on Friday inaugurated the second phase of an industrial park in Central Java province aimed at attracting investors looking to diversify supply chains away from China.
About 20 companies, including South Korea’s LG Energy Solutions and glass maker KCC Glass, are already based in Batang Industrial Park, occupying 10 percent of the park’s 4,300 hectares total area, and have either started building or committed to doing so.
President Jokowi said companies have invested 14 trillion rupiah ($860 million) so far.
President Jokowi said an additional 400 hectares of land would be made available to investors to create manufacturing jobs.
“We need to create as many jobs as possible for our people,” he said.
Companies investing in Batang Industrial Park can enjoy tax reductions on the import of machinery in accordance with the tax regulations for industrial parks.
President Jokowi said LG Energy Solutions will start producing cathodes, a vital component in electric vehicle batteries, in September.
He previously said the company would build a $2.4 billion factory in the Batam Industrial Park to produce 220,000 tonnes of precursors and 42,000 tonnes of cathodes per year.
He said the output would be the main feedstock for the company’s planned $3.6 billion 200 gigawatt-hour battery cell factory in Karawang industrial city in West Java.
(1 dollar = 16,285,0000 rupiah)
(Writing by Stanley Widianto and Stefano Sulaiman; Editing by Ross Russell)
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