On March 20, 2024, Indonesian President Prabowo inaugurated the Batang Industrial City Special Economic Zone (KEK Batang) in Batang Regency, Central Java, and explicitly proposed to build this special economic zone into the “Shenzhen of Indonesia.” This vision, which is benchmarked against China’s iconic city of reform and opening up, not only marks a comprehensive upgrade of Indonesia’s industrialization strategy but also serves as a model for international industrial cooperation under the China-Indonesia “Two Countries, Two Parks” cooperation framework.

Upgrading the Special Economic Zone: The Core of Indonesia’s Industrialization Strategy

The predecessor of Batang Industrial City, the Batang Integrated Industrial Estate (KITB), was officially put into operation on July 26, 2024, by former Indonesian President Joko Widodo. It initially attracted investments of 13.3 trillion Indonesian rupiah (about 580 million US dollars), with companies such as KCC Glass Factory and Wavin Plastic Pipe Factory moving in.

On March 20, 2025, President Prabowo upgraded it to a Special Economic Zone. By implementing a “policy package” that includes tax incentives (reducing corporate income tax to 5%-22%), customs facilitation (exemption of tariffs on imported equipment), and optimized land policies (up to 95 years of land use rights), it further attracts domestic and foreign capital.

As the largest state-owned Special Economic Zone in Indonesia (covering 4,300 hectares), the Batang Special Economic Zone has already attracted investments of 17.95 trillion Indonesian rupiah and drawn in 27 companies across diverse fields such as solar panels, medical devices, and footwear manufacturing.**

The Indonesian government forecasts that over the next 3 to 5 years, the Special Economic Zone will see an additional 75.8 trillion Indonesian rupiah in investment and create 58,145 jobs, with 80% of the workforce coming from local communities.

“Shenzhen DNA”: Deep Integration of Geographical Advantage and Industrial Clusters

The core competitiveness of Batang Industrial City lies in its dual strengths of “geographical hub + industrial clusters”:

1. Geographical Hub Position

– Dense Transportation Network: Located 200 kilometers from Jakarta, it is adjacent to the Pantura Highway, which spans Java Island, and the entrance to the Semarang-Batang Expressway, providing access to logistics arteries within 8 minutes.

– International Logistics Springboard: Leveraging the under-construction super dry port railway line (capable of transporting 30-car container trains) and the expansion plan for Batang Port, it directly connects to the international maritime shipping network.

– Outstanding Disaster Resistance: Free from flood risks and with a stable power supply rate of 98%, it offers reliable assurance for industrial operations.

2. Synergy of Three Major Industrial Clusters

– Industry and Processing Zone: Focusing on technology-intensive industries, such as the China Wanxinda Batang Industrial Park (planned at 6 million square meters), which introduces high-end manufacturing in photovoltaics and new materials.

– Logistics and Transportation Zone: Integrating warehousing centers and intelligent multimodal transportation hubs, reducing supply chain costs by 15%-20%.

– Tourism and Real Estate Zone: Equipped with commercial centers, international schools, and ecological wetland parks, it creates a “15-minute production-city living circle.”

This layout highly aligns with Shenzhen’s development logic of “front port – middle area – back city.” By achieving industrial synergy and complementary urban functions, it realizes a virtuous cycle of “promoting the city through industry and prospering the industry through the city.”

China-Indonesia Cooperation: “Two Countries, Two Parks” Driving International Industrial Cooperation

The Batang Special Economic Zone is one of the core carriers of the China-Indonesia “Two Countries, Two Parks” cooperation:

– The China-Indonesia “Two Countries, Two Parks” Batang (KITB) Wanxinda Industrial Park, drawing on China’s experience in industrial new city operations, plans to build an international industrial cooperation platform in two phases over five years.

– Deep Participation of Chinese Enterprises: China Construction International signed a Memorandum of Understanding with the Special Economic Zone, focusing on green energy and infrastructure development.

– Policy Coordination and Experience Transfer: Indonesia adopts China’s special economic zone management model, streamlining foreign investment approval processes and providing “one-stop” services. Meanwhile, by introducing Chinese technical standards (such as centralized waste treatment systems), it promotes the green transformation of Indonesia’s industry.

Chinese Ambassador to Indonesia Wang Lutong said at the inauguration site that the Batang Industrial Park is one of the important achievements of the “Two Countries, Two Parks” cooperation and is expected to become a model of China-Indonesia cooperation in the future.

Moving Towards an Industrial Future

The launch of the Batang Industrial City Special Economic Zone marks a solid step for Indonesia in achieving economic modernization and narrowing the development gap with neighboring countries. President Prabowo’s vision of creating the “Shenzhen of Indonesia” is not just a slogan, but a concrete development goal. By attracting more foreign investment and promoting industrial upgrading, the Batang Special Economic Zone is expected to lead Indonesia’s industrialization process and bring more employment opportunities and economic growth to the country.

In the future, as more enterprises and investments pour into the Batang Special Economic Zone, Indonesia is expected to enhance its overall industrial competitiveness and achieve more balanced economic development through the construction of this zone. As an important platform for China-Indonesia cooperation, the China-Indonesia “Two Countries, Two Parks” Batang (KITB) Wanxinda Industrial Park will further consolidate the economic relations between the two countries and promote the common prosperity of the regional economy, providing strong support for the creation of the “Shenzhen of Indonesia.”