KONTAN.CO.ID - JAKARTA. Indonesia plans to build one of its largest industrial parks on the north coast of Java island in a renewed drive to attract manufacturers relocating out of China as Southeast Asia's biggest economy comes out of a coronavirus-induced lockdown. Yet, despite its low wages and huge domestic market Indonesia must overcome decades-old hurdles including red tape, rigid labour laws, and poor infrastructure to be able to move up the global manufacturing value chain. This time, in its quest to emulate rivals such as Vietnam, the government has shown serious intent in bringing about change and is aiming to pass an ambitious 'omnibus' bill later this year to address some of the pressing foreign investor concerns.
Baca Juga: North Korea says little reason to maintain Kim-Trump ties At the same time it is pushing ahead with plans for a 4,000- hectare (9,884-acre) industrial park, an area equivalent to more than 5,000 football fields, in Brebes, Central Java - mainly targeting supply chains relocating out of China. "This is a pilot project for Indonesia on how we can attract global investors heading out of China," said Ahmad Fauzie Nur, chief operating officer of PT Kawasan Industri Wijayakusuma, the state company due to operate the park. In a bid to avoid problems securing land, the government would use a law to acquire land cheaply and ensure low rents at the park, said Fauzie Nur.
