Twin Countries, Twin Parks: Collaborative Development – Introduction to the Wanxinda Batang Industrial Park Project

Introduction to the Wanxinda Batang Industrial Park Project

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Twin Countries, Twin Parks – Collaborative Development


Aerial view of the Wanxinda Batang Industrial Park along the expressway

Three Major Guarantees for Settling In

Advantage

Indonesia

NO.1

Here is the translation of the provided text:

Twin Countries, Twin Parks – Collaborative Development

Initiating with the Favorable Wind to Ride the Waves

    The Wanxinda Batang Industrial Park is an important part of the China-Indonesia “Twin Countries, Twin Parks” construction initiative. The project collaborates with the world’s leading industrial new city operators to implement the “Belt and Road” initiative, jointly creating a high-quality international production capacity cooperation platform. Upon completion, it plans to attract domestic and foreign enterprises to settle in, work together to create a synergistic industrial cluster development ecosystem, assist in the development of local enterprises and the upgrading of the industrial chain, empower each other, and welcome a new future!

Industrial Interconnection

Infrastructure Interconnectivity

Mutually Beneficial Policies

Signing Ceremony for the Indonesia Batang – Wanxinda Industrial Park Project

     To further implement and promote the “Twin Countries, Twin Parks” initiative, representatives of the China-Indonesia “Twin Countries, Twin Parks” project convened on May 10, 2023, in Semarang, the capital of Central Java province, and jointly witnessed the signing ceremony of the Indonesia Batang – Wanxinda Industrial Park. The “Twin Countries, Twin Parks” project – Batang – Wanxinda Industrial Park officially commenced.

The Wanxinda Industrial Park holds an on-site office meeting

    On May 15, 2023, Mr. Lu Kang, the Chinese Ambassador to Indonesia, led a delegation including Consul General Xu Yong from the Consulate General in Surabaya, to visit the Batang Industrial City in Indonesia. Accompanied by Mr. Ngurah Wirawan, Chairman of the Batang Industrial City Management Committee, and the entire leadership team, they inspected the overall development of the Batang Industrial City. In response to the attention and support of leaders at all levels for the progress of the project, representatives of the Wanxinda project conducted an introduction of the project at the on-site office meeting of the Wanxinda Industrial Park. They also provided a detailed explanation of the future construction progress and plans for the industrial park to the leaders present.

NO.2

Wanxinda Industrial Park Locational Advantages

An Introduction to Indonesia’s Geographical Position

    Indonesia boasts a superior geographical environment, located in the southeastern part of Asia, and is the largest country in Southeast Asia by area. It straddles the equator and shares borders with Papua New Guinea, East Timor, and Malaysia. It faces Thailand, Singapore, the Philippines, Australia, and other countries across the sea, and is situated on the central axis between the global energy center of the Middle East and the emerging economic regions of the world.

Introduction to the Location of Wanxinda Batang Industrial Park

     The Wanxinda Batang Industrial Park is located within the Batang Industrial Park, a key national development project developed by Indonesian state-owned enterprises. It is situated at the central hub of Central Java province on the island of Java, with convenient access to sea, land, and air transportation (it takes only about 40 minutes to 1 hour by car to reach Ahmad Yani Airport in Semarang, the capital of Central Java province, and only 1 hour and 15 minutes to Tanjung Emas International Port in Semarang). With the advancement of the Batang Industrial Park project, transportation facilities will be further improved, making travel more convenient, faster, and smoother.

NO.3

Industrial Park Introduction and Vision

The Wanxinda Batang Industrial Park project is planned to cover a total area of 6 million square meters and is scheduled to be completed in two phases within 5 years.

The construction types of the project’s factory buildings are mainly divided into light industry and

equipment categories.The lease terms for the project’s factorybuildings are primarily 5 years, 10 years, and 20 years.

Light Industry Type Factory Buildings:

These are two-story buildings, primarily for the use of manufacturing enterprises in electronics, textiles, bags, and similar industries;

the estimated monthly rent is Rp44,000 per square meter.

Equipment Type Factory Buildings:

These are single-story buildings with a height of ten meters, primarily designed for the use of heavy machinery and equipment such as cranes;

the estimated monthly rent is Rp61,600 per square meter.

     The first phase of the project covers 200 hectares and is planned to be fully completed by 2024. It is expected to attract 200 enterprises within 3 years, creating approximately 200,000 job positions. Among them, 300,000 square meters of factory buildings will be put into use by the end of 2023, facilitating the priority entry of Wanxinda’s Indonesian factory’s bag production line and some signed customers.

      In 2024, the Wanxinda Indonesian factory will be fully relocated to the Batang Park and, together with similar and related upstream and downstream enterprises in the park, will create a multi-party collaborative industrial cluster development ecosystem. By leveraging Semarang’s status as a global highland for luggage manufacturing, Wanxinda Batang Industrial Park is committed to becoming a global highland for the luggage manufacturing industry, and will also help Central Java province become a world center for product manufacturing.

PART 04

2023 Business Summit

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Indonesia’s Development Advantages

Seize the New Opportunities and Win A New Future

              Indonesia is the largest economy in Southeast Asia and the only country in the region with a GDP exceeding one trillion. It has enormous potential for development. With the introduction of various plans and decisions aimed at strengthening Indonesia’s economic recovery and pursuing high-quality economic growth in recent years, significant results have been achieved.

01

Demographic Dividend

    According to statistical data from the Central Bureau of Statistics of Indonesia in December 2020, Indonesia’s population is approximately 271 million, making it the fourth most populous country in the world; the population of Central Java province is 37 million, with a large population base, abundant labor force, and relatively low labor costs. The reference salary standard is 2,282,052 Indonesian Rupiah, equivalent to about 1037 RMB, indicating an abundant labor resource that is both plentiful and cost-effective.

02

Many preferential policies

      The Indonesian government offers a range of preferential policies to foreign investors, including tax reductions and exemptions, reduction of administrative barriers, and the provision of infrastructure.

03

Good Investment environment

    In 2022, according to the latest data released by the Indonesian Ministry of Investment, Indonesia has secured a total domestic and foreign investment of 1,207.2 trillion Indonesian Rupiah, a 34% increase compared to the previous year, and also exceeded the government’s initial target of 1,200 trillion Indonesian Rupiah, demonstrating strong investment appeal. In March 2023, the Indonesian Parliament passed the “Job Creation Comprehensive Law,” which is seen as an important initiative by the government to improve the business environment, enhance administrative efficiency, and adjust the relationship between enterprises and employees.

Regarding Indonesia’s investment advantages, the key points are as follows:

Indonesia is rich in natural resources;

It has an abundant and low-cost labor force;

The geographical location is superior with mature transportation infrastructure;

It covers key maritime traffic lines;

The country is stable and emphasizes the expansion of investment;

There is a high degree of marketization, and the financial market is relatively open;

The economic growth prospects are optimistic, and the market potential is vast.

04

Huge Market Potential

In 2021, the Gross Merchandise Volume (GMV) of the internet economy in the six major Southeast Asian countries grew at a compound annual rate of over 30%, indicating a period of rapid development. Among them, Indonesia led with an internet economy GMV of 70 billion yuan.

    In 2022, Indonesia’s GDP reached 1.28 trillion US dollars, ranking sixteenth in the world, and its purchasing power level ranked eighth globally, making it one of the most important and dynamic markets in Southeast Asia. Considering Indonesia’s needs in industrialization, infrastructure, industrial upgrading, and the digital economy, China’s investment in Indonesia has increased significantly.

According to International Daily, Indonesia’s Investment Minister Bahlil Lahadalia stated that from January to March 2023, the realized value of investment reached 328.9 trillion rupiah, a year-on-year increase of 16.5%; it accounted for 23.5% of the annual target, and the number of workers absorbed reached 384,892. Looking at the sources of investment, during the first quarter, investments from Singapore were 4.3 billion US dollars, Hong Kong, China, reached 1.5 billion US dollars, mainland China reached 1.2 billion US dollars, Japan was about 1 billion US dollars, and the United States was about 800 million US dollars.

     In 2023, Wanxinda Industrial Park will lead partners in making new choices and looks forward to working with more partners to set sail together, standing at a new starting point, exploring new directions, and welcoming a new future!


 

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