JIIPE has been selected for 3-hour investment approval scheme

JAKARTA - Java Integrated Industrial and Port Estate (“JIIPE”) has been selected as one of the 14 industrial estates which have been approved by the government under this newly established KLIK scheme. The KLIK scheme introduced by the government aims to incentivize and spearhead the process of further promotion of industries in Indonesia.

The President of Indonesia, Mr Joko Widodo (“Jokowi”), has inaugurated the scheme during the signing ceremony at State Place in Jakarta. Indonesian Investment Coordinating Board (“BKPM”) has introduced this scheme and its benefits include lesser processing time for investment permit (only 3 hours) and tenants able to commence construction as soon as their permit has been approved. In addition, government doesn’t impose minimum threshold requirement in terms of capital investment as well as number of workers to be employed making JIIPE as more attractive investment destination. 

JIIPE is the only industrial estate in East Java which meets the criteria imposed by this scheme. Mr Franky Sibarani, Chairman of BKPM stated “from a number of companies that submitted the application, only one has been approved in East Java. That’s due to the various considerations we take into account such as legal, environment, land availability as well as infrastructure” said Franky during the signing ceremony at State Place.

Mr Haryanto Adikoesoemo, President Director of AKRA, one of the majority shareholders of BKMS which partners with Pelindo 3 in developing JIIPE industrial estate said “this new scheme would make JIIPE as an attractive investment destination and allows us to further promote JIIPE to our potential tenants due to the various incentives it offer” said Haryanto.

Conveniently located in Gresik, 24km from the capital city of East Java – Surabaya, JIIPE is the first fully integrated industrial estate established in Indonesia with its deep sea port and with excellent connectivity to multi modal transportation facilities such as toll roads, railway, international airport connecting Surabaya and major cities in East Java. Its key competitive advantage lies in the integration of industrial estate with other infrastructure facilities such as port and toll roads with the objective of reducing “logistics cost”.

Updates on development of port & industrial estate at JIIPE

During the month of January 2016, Pelindo 3 commenced stage 1 of its port operations after its operational license was obtained in the month of December 2015. The 85 hectare development in the 1st stage of port along with 2x 250 meters of Jetty is integrated with the industrial estate and offers a deep water access up to 13 meters currently. As for the industrial estate, 2 tenants have commenced construction and the first tenant is to commence operation during the 1^st quarter of 2016.

The news release is also available on the Company’s website http://www.akr.co.id/