Kendal Industrial Park

Kendal Industrial Park (KIP) is the largest industrial township development in Central Java, Indonesia with a total development size of 2,200 hectares. KIP is also a joint venture between two industrial developers in South East Asia naming Sembcorp Development Ltd and PT Jababeka Tbk.

This project is highly supported by Indonesia’s and Singapore’s governments it was officially open on 16th November 2016 was officiated by President Jokowi and PM Lee Hsien Loong. To date, KIP has successfully attracted over 61 tenants from different industries such as food, furniture, stationery, building materials, warehousing, and so on.

First phase of Kendal Industrial Park

The 1st phase of KIP developments will include a golf course, town center, shopping district, marina city, food city, fashion hub, furniture hub, high-rise residential developments, luxurious bungalows, and industrial clusters. This development is the first of its kind in Central Java and even Indonesia, ambitiously expanding and developing rapidly. KIP will be an operating ecosystem for many industrial clusters and a self-sustaining economic system.

The Indonesian government established KIP as one of the National Strategic Project, and accelerates the development of macro and micro infrastructure. Therefore, The Coordinating Ministry for Economic Affairs, monitor and evaluate the implementation of National Strategic Project and report to the President at the minimum once time every six months. In December 2019, The Government has officially designated KIP, as New Special Economic Zone (SEZ) regulated with PP No.85/2019.

Update on Kendal Industrial Park

Kendal Industrial Park in Indonesia, a collaboration between Singapore and Indonesia, has gained remarkable success within six years. It has attracted 72 committed tenants and investments worth US$1.7 billion. Finance Minister Lawrence Wong mentioned plans to expand the park, doubling its size in its second phase, bringing more investments and jobs. The park, inaugurated in 2016 by Singapore’s Prime Minister Lee Hsien Loong and Indonesia’s President Joko Widodo, currently houses 74 tenants from various regions and has created over 12,000 jobs. Minister Wong’s visit also highlighted the park’s significant progress, stating that its growth trajectory has been successful considering its groundbreaking in 2016.

Kendal Industrial Park Sees Major Investments in 2024

Kendal Industrial Park in Central Java is emerging as a key manufacturing hub in Indonesia, attracting significant foreign investment across multiple industries, including tires, healthcare, and electric vehicle (EV) battery components.

ZC Rubber has officially launched Phase I production at its new PT Matahari Tire Indonesia (MTI) plant in Kendal Industrial Park. This $280 million investment spans 500,000 square meters and produces truck, bus, and two-wheeler tires, inner tubes, tracks, and carbon black. Once fully operational, the plant aims for $720 million in annual revenue, reinforcing Indonesia’s role in global tire manufacturing.

PT Beurer Indonesia Technology, a subsidiary of German medical device giant Beurer GmbH, has opened its first Southeast Asian production facility in Kendal Special Economic Zone (KEK). Beurer, a global leader in healthcare products, operates in 140 countries with $500 million in annual revenue. The company signed its investment agreement in 2023 at the Hannover Messe event in Germany.

PT Indonesia BTR New Energy Material inaugurated the first lithium-ion battery anode factory in Kendal Industrial Park, marking a major milestone in the EV battery supply chain. The $478 million first phase has an 80,000-tonne capacity, while the $299 million second phase, launching in late 2024, will double capacity to 160,000 tonnes.

The factory has already begun exports, with 30.8 tonnes shipped in August to Samsung. Orders from LG, Panasonic, and Tesla highlight Kendal’s growing importance in the global EV ecosystem

Additional Details

• Developer: Sembcorp Development (Singapore) & PT Jababeka Tbk
• Key industrial sectors: Food, Furniture, Fashion, Automotive, Electronics
• Electricity supply: 600 MVA
• Water supply: Water supply (1st phase) 24,000 CMD, Wastewater (1st phase) 20,000 CMD
• Seaport: 25 km Tanjung Emas Seaport
• Ready built factories: Semi-detached and terraced factories and mixed-use buildings
• Tax incentives: SEZ status, up to 20 year tax holiday depending on investment status