REPUBLIKA.CO.ID, GRESIK -- Indonesian President Joko Widodo (Jokowi) said that the area of Java Integrated Industrial and Port Estate (JIIPE) can serve to improve Indonesia's competitiveness compared with the neighbouring countries. The JIIPE area has an Industrial Area Business License covering an area of 1,760 hectares that is equipped with 23 megawatt power plant and a number of industrial clusters.
"I believe that integrated areas such as JIIPE can improve our competitiveness, especially in the fields of exports and investment, in order to compete with Malaysia, Thailand, and Vietnam," he said after inaugurating the JIIPE in Gresik, East Java province, on Friday.
Jokowi believed the area is a good example as it is equipped with a power plant and a port. "So, it is very efficient to directly utilise the port to export products from factories to other countries," he said.
With the suppression of production prices, Indonesian products can also compete in the global market. Widodo said collaboration between state-owned enterprises, private sector, and industrial parties would accelerate the improvement of infrastructure, covering roads, toll roads, ports, power plants, and others.
"I want more industrial estates to be opened in our country, so that more jobs can be offered," he said.
According to Minister of Industry Airlangga Hartanto, the absorbed workforce is expected to reach 500,000 people and jobs to 1.5 million in eight years.
"Industrial development will be able to absorb labour and investment for the integrated middle and upper industries for commodities such as chemicals, metal, palm oil, and cold storage," he stated.
JIIPE is divided into several clusters -- Port Estate, Heavy Industry, Medium Industry, Light Industry, Commercial, Ports and Residential Areas. These clusters are targeted to accommodate some 183 industries that will absorb an investment of Rp83.2 trillion.
Currently, of the eight companies investing in the JIIPE area, two have started operations, two are developing factories, and four others will begin construction soon.
However, there is still a need to develop some infrastructure, such as widening of Daendels Street and connecting 11 km of railway from Duduk Sampeyan Station and Krian-Legundi-Bunder-Manyar toll road to the JIIPE.
A signing of operation of Manyar Terminal in the Port of Gresik, which is part of JIIPE, was done on December 15, 2017, between the Ministry of Transportation and PT Berlian Manyar Sejahtera as a Port Business Entity, with a concession period of 76 years.
The terminal was designed with multi-purpose ports to facilitate loading and unloading of dry bulk, liquid bulk, general cargo and containers. Manyar Terminal is capable of being swayed by large ships up to 100,000 deadweight tonnage (DWT).
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