A groundbreaking ceremony for an industrial park to be jointly developed by Taiwan and Indonesia took place in suburban Jakarta on Saturday, where the development of a cluster of Taiwanese-invested factories is planned.
Kaohsiung-based China Steel Structure Co (中國鋼鐵結構) and Acquire Universal Advantage Land Development (AUA, 寰宇利達) in Kaohsiung will work together on the development of the 216 hectare area.
The planned industrial zone is expected to attract 120 businesses and have an annual production worth US$30 billion, according to the developers.
Indonesian authorities have agreed to grant 10-year tax exemptions to companies that produce machinery, textile products or farm equipment in the park.
AUA chairman Hsu Chuan-jen (徐川人) said that during the project’s planning process, several machinery companies and automobile parts companies asked for information about the planned industrial zone.
As a result, 50 hectares of the park will be set aside for mold, machinery and automobile spare part manufacturers.
Indonesia Investment Coordinating Board deputy chairman Achmad Kurniadi expressed his gratitude to Taiwanese businesses for developing the industrial zone and said the project would give Indonesia confidence in its ability to attract foreign investment.
Kurniadi said he believes the planned industrial area will be a successful model that makes it easier for Taiwanese businesses planning to invest in Indonesia to find a location to set up a factory there.
According to the Asian Development Bank’s Asian Development Outlook report for this year, the economic growth of Indonesia is forecast to increase 0.2 percentage points to 6.4 percent this year, supported by robust domestic consumption, improved investment and a gradual pickup in world trade.