Indonesian President Joko visits the Batang Industrial City of the China-Indonesia “Two Countries and Two Parks” as part of the “Belt and Road” benchmark project.

// Enterprise Dynamics, Policy

At approximately 15:30 local time on July 26, 2024, the Batang Industrial City of the China-Indonesia “Two Countries and Two Parks” project welcomed a significant milestone in its development history. Indonesian President Joko Widodo, accompanied by Luhut Binsar Pandjaitan, the head of China-Indonesia cooperation and Coordinating Minister for Maritime Affairs and Investment, Minister of Investment Bahlil Lahadalia, Minister of Transportation Budi Karya Sumadi, and Minister of State-Owned Enterprises Erick Thohir, among other government officials, visited the site for an inspection and jointly witnessed the grand opening ceremony of the park’s operation.

Indonesian President Joko speaks.

At the opening ceremony, President Joko delivered an important speech, in which he said: “Since 2019, the geopolitical tensions among major countries have been heating up due to the US-China trade war, and they have not yet ended. Countries around the world are scrambling to develop their industries to encourage steady economic growth. Indonesia also needs an industrial rise to attract more investors. For this reason, it was decided to build the Batang Industrial City of the China-Indonesia ‘Two Countries and Two Parks’ (KITB) as a national key project. I convey to the coordinating ministers and ministers related to the industrial sector, as well as the directors, that they are actively and continuously marketing. We have already seen a large area of industrial plants under construction, and several factories have already started production.”

Dr. Chen Rilin, the executive of the China-Indonesia “Two Countries and Two Parks” Batang Industrial Park, and distinguished guests listen to the President’s speech.

The Indonesian government and all sectors strongly support the construction of the Batang Industrial City (KITB) and encourage investment attraction. It is believed that the China-Indonesia “Two Countries and Two Parks” Batang Industrial City (KITB) will truly develop into a model park that can drive local employment, improve local livelihoods, develop the local economy, and achieve coordinated economic development between China and Indonesia.

President Joko met with Dr. Chen Rilin, the executive of the China-Indonesia “Two Countries and Two Parks” Batang Industrial Park.

Luhut Binsar Pandjaitan, the head of China-Indonesia cooperation andCoordinating Minister

for Maritime Affairsand Investment of Indonesia,conversed

with Dr. Chen Rilin, the executive of the China-Indonesia”Two Countries and Two Parks” Batang Industrial Park.

【China-Indonesia “Two Countries and Two Parks” Background】

To further promote the high-quality joint construction of the “Belt and Road” initiative in conjunction with Indonesia’s “Global Maritime Fulcrum” vision, to advance the high-quality implementation of the RCEP (Regional Comprehensive Economic Partnership), and to deepen economic cooperation with local regions in Indonesia, a joint effort is being made to build the China-Indonesia Economic and Trade Innovation and Development Demonstration Zone. In January 2021, the Memorandum of Understanding for the China-Indonesia “Two Countries and Two Parks” project was signed. The Chinese side designated the Yuanhong Investment Area in Fuzhou as the Chinese park, while the Indonesian side adopted a multi-zone model for one park, identifying the Batang Industrial City (KITB), Bintan Industrial Park, and Averna Industrial Park as the Indonesian cooperative parks. The “Two Countries and Two Parks” project between China and Indonesia aims to deepen innovative ways of economic and trade cooperation between the two countries.In January 2023, the “Overall Plan for the China-Indonesia Economic and Trade Innovation and Development Demonstration Zone” was approved by the State Council and included as one of the major platforms in the National Development and Reform Commission’s “Belt and Road” Maritime Silk Road core area construction plan, as well as in the Ministry of Commerce’s “14th Five-Year” business development plan and the plan for high-quality development of foreign trade.

The China-Indonesia “Two Countries and Two Parks” has grown from nothing to something, from a point to a surface, with high standards and rapid progress. Guided by the principles of mutual consultation, joint construction, and shared benefits, and inspired by the spirit of the Silk Road characterized by peaceful cooperation, openness, inclusiveness, mutual learning, and mutual benefit, the project has achieved fruitful results and has won widespread approval and active participation.

【Batang Industrial City (KITB)】

To encourage foreign companies to invest in Indonesia, Batang Industrial City was established within the administrative area of Batang Regency under the personal directive of President Joko. It is an industrial designated area developed, managed, and provided with infrastructure support by Batang Industrial Shareholders Limited (PT KITB).

The area is located on land owned by PTPN IX (Perum Perkebunan Nusantara IX, a state-owned plantation company in Indonesia), with a total area of about 4,300 hectares. Given the park’s convenient accessibility, connectivity, clear land ownership, competitive land prices, and existing infrastructure, Batang Integrated Industrial Zone has a significant advantage in its strategic location and enjoys a high reputation among Chinese-funded enterprises.

Batang Industrial City (KITB)

【China-Indonesia “Two Countries and Two Parks” Batang Industrial Park】

The China-Indonesia “Two Countries and Two Parks” Batang Industrial Park project is located within Batang Industrial City (KITB). The project’s executing entity, the Wanxinda Enterprise Group, was founded in 1998 and has been established in Guangdong, China for 26 years. It possesses profound experience in industrial development, with its industries covering various fields including the manufacturing of IT peripheral products, inspection and testing services, green environmental protection, real estate development (including industrial real estate development), e-commerce, and cultural tourism industries.

China-Indonesia “Two Countries and Two Parks” Batang Industrial Park – Conceptual Rendering

The China-Indonesia “Two Countries and Two Parks” Batang Industrial Park is a product of Wanxinda’s in-depth implementation of the “Belt and Road” initiative and its active participation in the construction of the “Two Countries and Two Parks” between China and Indonesia.

In May 2023, under the witness of Zhou Zuyi, Secretary of the Fujian Provincial Committee of China, Lu Kang, Chinese Ambassador to Indonesia, and H. Ganjar Pranowo, Governor of Central Java Province, a series of signings including a land use agreement were conducted. The foundation stone was laid on December 10, 2023, and construction was started with the plan to complete and deliver 1 million square meters of factory buildings within 2024. The goal is to build an industrial plant of over 10 million square meters in scale within five years. This will help Chinese enterprises to quickly establish themselves in Indonesia, create several highly competitive industrial clusters, and assist Indonesia in becoming a world-class manufacturing center.

On May 10, 2023, at the signing ceremony of the China-Indonesia “Two Countries and Two Parks” Batang Industrial Park.

China-Indonesia “Two Countries and Two Parks” Batang Industrial Park construction site.

This inspection not only reflects President Joko’s high regard for the development of the industrial park but also serves as an important testament to the friendly relations between China and Indonesia.

As the founding partner of the Wanxinda Industrial Ecology Fund (GP)

As a benchmark project of the “Belt and Road” initiative, the China-Indonesia “Two Countries and Two Parks” Batang Industrial Park is destined to fulfill its mission, seize the vanguard of Chinese “enterprises going global,” and provide investors with a “one-stop” service based on the needs of Chinese small and medium-sized enterprises expanding into Indonesia. Continuing to seize the significant opportunities for high-quality joint construction of the “Belt and Road,” it will promote the development of green industrial parks, stimulate local employment, enhance commercial economic benefits, and foster the economic development of the Batang region and Indonesia, thereby contributing to the sustainable economic and social development of Indonesia.