Press Statement of President of the Republic of Indonesia After the Inspection of Batang Integrated Industrial Estate, Batang Regency, Central Java Province, July 26, 2024
President of the Republic of Indonesia (Joko Widodo)
The Batang Integrated Industrial Estate is rapidly attracting foreign investments to Indonesia. It hosts a diverse range of industries, including the footwear industry, and the largest glass industry, which is set to become the world’s largest and will begin production in September. Additionally, a Dutch plastic pipe industry will soon commence operations, along with 18 other enterprises that are still in development.
We hope that the development will extend beyond the 800 hectares on the north side of the toll road to encompass the southern side as well, totaling 4,300 hectares. Most importantly, this expansion will create extensive job opportunities for the Indonesian people, particularly for those in Central Java, as around 250,000 employees and workers will be able to work here. This is something very positive and beneficial for the economic growth of Central Java province.
Journalist
Mr. Jokowi, still related to investments, Elon Musk canceled the construction of a Tesla factory in Indonesia. Do you have a plan to once again invite Elon Musk to invest in Indonesia, and in what form is that?
President of the Republic of Indonesia (Joko Widodo)
Well, we’ve already had Hyundai investing and producing electric vehicles (EVs) here. Additionally, for EV battery investments, we have recently opened a facility in Karawang. Soon, as I mentioned earlier, we will have cathode and anode factories that will bolster our EV battery industry. With the presence of EV batteries, it will be easier to develop the automotive industry, as 40-50% of a car’s components are in its electric battery.
So, it’s not just Hyundai; we also have Wuling, BYD, VinFast, and Chery. I believe we shouldn’t rely on only one or two brands. Instead, we must remain optimistic that with a well-executed downstream industry development, investors will seek opportunities rather than us having to search for them. We need to be optimistic.
Journalist
Sir, still about investments, what about the Golden Visa?
President of the Republic of Indonesia (Joko Widodo)
It provides accelerated access for investors, the large and medium ones, to invest in Indonesia by providing Golden Visa valid for five to ten years, to simplify the process. Other countries are also doing this, so if we don’t, we’ll be overlooked.
Journalist
Mr. Jokowi, may I? Regarding the statement from Mr. Benny, [Head of] BP2MI about the initials ‘T’ being involved in online gambling. He also mentioned that you were aware of this. What is your response, sir?
President of the Republic of Indonesia (Joko Widodo):
I don’t know, you should ask Mr. Benny about that.
Journalist
Sir, about mining concessions, Muhammadiyah has recently accepted the offer for mining concessions. What is your response to that, sir?
President of the Republic of Indonesia (Joko Widodo):
We aim for economic equality and justice. When visiting Islamic Boarding Schools and having a dialog at mosques, many people complain to me, “Why are mining concessions only given to big companies? We can handle them if we are given the concessions.” That’s what prompted us to create regulations to allow mass organizations, religious organizations, through their business entities like cooperatives or companies, to manage mining operations. We don’t encourage the religious organizations themselves to apply for concessions. If they are interested and capable, the regulations are there for them to follow.
(AY/MMB)