BKPM Invites Dutch Pipe Producers to Build a Factory of IDR 1.7 trillion in Batang Integrated Industrial Estate (KIT Batang)

Jakarta, 23 November 2020 - On the second day of his working visit to the Netherlands, Chairman of the Indonesia Investment Coordinating Board (BKPM) Bahlil Lahadalia held a meeting with global pipe manufacturer Wavin BV in The Hague on Thursday (19/11). As a result, Wavin will invest in Indonesia worth USD 125 million or IDR1.7 trillion.

“We offer Wavin to build a factory in the Batang Integrated Industrial Estate (KIT Batang). KIT Batang provides very competitive land prices; facilities and infrastructure are also satisfactory,” said Bahlil to the President of APAC Wavin Group Freek Crump and the person in charge of Wavin for the Asia Pacific region, Johanes Dress.

Wavin plans to build a factory in a location on the Java Island. However, based on logistics and transportation calculations, the area is less efficient. Meanwhile, KIT Batang is ready to provide a land area of ​​20 hectares to be used as an investment location.

“If you plan to supply raw materials from Cilegon, Banten, then Batang can be reached by train, because the railway station is already settled in Batang to support cheaper logistics costs,” Bahlil added.

Wavin plans to invest in Indonesia with value up to USD 125 million or IDR 1.7 trillion with a target to start its production in 2022. It is expected that the new factory can directly absorb as many as 400-500 workers. Bahlil said, with the massive infrastructure development in Indonesia, Wavin can act as a supplier of pipeline needs and can meet national pipeline needs. On the other hand, with the government policy to tighten imports for material needs for infrastructure development, Wavin has taken the right steps with the plan to build his factory in Indonesia.

Wavin’s business expansion, which have operated in 25 countries in Asia, Australia, Africa, Latin America, Middle East and North America, have encouraged the company to strengthen its presence in the Asia Pacific market. Wavin made his choice to Indonesia to become a hub in the Asia Pacific. Previously, Wavin had collaborated with a local company to produce plastic pipes under the Wavin brand, but the cooperation ended 2 years ago. “However, Wavin wants to be independent with a new entity, which becomes Wavin’s first diversification project in Indonesia,” said BKPM Deputy Chairman for Investment Promotion, Ikmal Lukman.

Wavin is a global plastic pipe manufacturer based in Zwolle, the Netherlands and has been established since 1955. This company is able to develop a variety of environmentally friendly pipe products for the benefit of drainage facilities and water supply.

The BKPM Chairman’s visit this time was to fulfill the invitation of the Indonesian Embassy in The Hague and the Indonesian Chamber of Commerce and Industry (KADIN) in disseminating the Job Creation Law (UU CK) to business actors in the Netherlands, especially for investors who earnestly plan to develop its business in Indonesia.

According to the Netherlands’ investment record in Indonesia from 2015 to September 2020, the Netherlands ranks the 6th place with a total investment value of USD8.8 billion. In that period, the Netherlands was the first European country in the top 10 ranking of Indonesia’s investments source country. Based on sector, the Netherlands investment was recorded mostly in the Electricity, Gas and Water sector (35.1 percent); Warehouse Transportation and Telecommunications (22.5 percent); Mining (17.3 percent); Chemical and Pharmaceutical Industry (6.5 percent); Food Industry (4.7 percent) and other sectors (13.8 percent).

KIT Batang is a pilot industrial area for cooperation between the government and the State-Owned Enterprises (BUMN), with the concept of basic infrastructure and supporting provided by the government. The construction of the Batang KIT is divided into 2 stages of development. Phase 1 is the development of 450 Ha of land, then the next stage covers a total area of ​​4,300 Ha. The government is aggressively pursuing the development of KIT Batang so that it is immediately ready to accept investments that will enter Indonesia. Currently, land clearing has reached 71 hectares and the construction of the marketing gallery office has been 100 percent completed. (*)