For manufacturing site selection in Indonesia, it is essential to understand the three major industrial belts on Java Island.
On Java Island, the main manufacturing industrial belts from west to east are divided into three major areas: the Jakarta-Bandung industrial belt, the Central Java industrial belt, and the East Java industrial belt. Among these three, the Jakarta-Bandung industrial belt has been developed for over 40 years, centered on Jakarta, spanning 120 kilometers from east to west. On the west side, there are large-scale industrial parks such as Millennium Park, Modern Cikande Park, and Xiashangzhou Park, while on the east side, it is more concentrated, including Jababeka Park, Marongga Park, Sinar Mas Park, Lippo Park, as well as two Chinese-invested parks: the China-Indonesia Economic and Trade Cooperation Zone and the Huaxia Happiness Park. The advantage of the Jakarta-Bandung industrial belt is its mature supporting facilities, making it suitable for high-tech and high-value-added industries. The disadvantages are higher land and labor costs, with average land prices exceeding 1,000 RMB per square meter and minimum wages reaching 2,600 RMB.
Second is the East Java industrial belt. The provincial capital of East Java, Surabaya, is the second-largest city in Indonesia. The industrial parks around Surabaya include the Gresik Park and the Jinfeng Park. Due to the presence of deep-water ports nearby, these two parks are particularly suitable for heavy chemical industries. Companies such as Xinyi Glass and Hailiang Copper Foil have chosen to set up here. Land and labor costs are comparable to those of the Jakarta-Bandung industrial belt.
Third is the Central Java industrial belt, which is an emerging manufacturing base in Indonesia. Its provincial capital is Semarang, and from west to east, the surrounding areas include Batang Wanzhida Park, Kendal Park, and JIPS Park. Compared to the previous two industrial belts, the Central Java industrial belt has lower land and labor costs, with average land prices ranging from 500 to 1,000 RMB and minimum wages as low as around 1,600 RMB. Therefore, a large number of labor-intensive industries such as textiles, luggage, footwear & apparel, and furniture have chosen to set up here.
Over the past year, Indonesia has been tightening restrictions on finished product imports, and recently even launched a six-month special operation to crack down on illegal imports. The model of cross-border finished product trade is becoming increasingly difficult, which means that setting up factories locally and building domestic supply chains presents greater opportunities.
行业快讯
Analysis of the Three Major Industrial Belts on Java Island for Setting Up Factories in Indonesia
For manufacturing site selection in Indonesia, it is essential to understand the three major industrial belts on Java Island.
On Java Island, the main manufacturing industrial belts from west to east are divided into three major areas: the Jakarta-Bandung industrial belt, the Central Java industrial belt, and the East Java industrial belt. Among these three, the Jakarta-Bandung industrial belt has been developed for over 40 years, centered on Jakarta, spanning 120 kilometers from east to west. On the west side, there are large-scale industrial parks such as Millennium Park, Modern Cikande Park, and Xiashangzhou Park, while on the east side, it is more concentrated, including Jababeka Park, Marongga Park, Sinar Mas Park, Lippo Park, as well as two Chinese-invested parks: the China-Indonesia Economic and Trade Cooperation Zone and the Huaxia Happiness Park. The advantage of the Jakarta-Bandung industrial belt is its mature supporting facilities, making it suitable for high-tech and high-value-added industries. The disadvantages are higher land and labor costs, with average land prices exceeding 1,000 RMB per square meter and minimum wages reaching 2,600 RMB.
Second is the East Java industrial belt. The provincial capital of East Java, Surabaya, is the second-largest city in Indonesia. The industrial parks around Surabaya include the Gresik Park and the Jinfeng Park. Due to the presence of deep-water ports nearby, these two parks are particularly suitable for heavy chemical industries. Companies such as Xinyi Glass and Hailiang Copper Foil have chosen to set up here. Land and labor costs are comparable to those of the Jakarta-Bandung industrial belt.
Third is the Central Java industrial belt, which is an emerging manufacturing base in Indonesia. Its provincial capital is Semarang, and from west to east, the surrounding areas include Batang Wanzhida Park, Kendal Park, and JIPS Park. Compared to the previous two industrial belts, the Central Java industrial belt has lower land and labor costs, with average land prices ranging from 500 to 1,000 RMB and minimum wages as low as around 1,600 RMB. Therefore, a large number of labor-intensive industries such as textiles, luggage, footwear & apparel, and furniture have chosen to set up here.
Over the past year, Indonesia has been tightening restrictions on finished product imports, and recently even launched a six-month special operation to crack down on illegal imports. The model of cross-border finished product trade is becoming increasingly difficult, which means that setting up factories locally and building domestic supply chains presents greater opportunities.
