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Indonesia wins US relocation from China game

  • Published at 04:59 pm May 19th, 2020
Trump Widodo reuters
Indonesia's President Joko Widodo talks with US President Donald Trump during the G20 leaders summit in Hamburg, Germany July 8, 2017 Reuters

The Indonesian government was preparing 4,000 hectares of land in Central Java

President of the United States (US) Donald Trump plans to relocate a number of American factories from China to Indonesia following relations between the two countries that are not getting along.

Donald Trump revealed his plan when speaking directly with President Joko Widodo (Jokowi) on May 11, reports CNBC Indonesia.

Indonesia's Coordinating Minister for Maritime and Investment Luhut Binsar Pandjaitan talked about the conversation between President Jokowi and US President Trump. 

"President Jokowi spoke with President Trump, now President Trump with Indonesia. Because he is fighting with China, he wants to relocate his industry (in China), I was asked by the president to speak later with President Trump's aides," Luhut said.

Luhut said the government was preparing 4,000 hectares of land in Central Java. The land was specifically provided for special economic zones for the pharmaceutical industry.

"Now we are working on it. While we are discussing with the Governor of Central Java, for now we will start. Actually, it has been done before, but it has stopped, well, so if you say that this [road] is not all road industry, now for example the APD industry is now domestically 1.5 million production per month, "Luhut said.

Luhut's statement about an industrial area of 4,000 hectares conical to the industrial estate in Brebes, because the Industrial Estate in Kendal covers only 2,200 hectares.

Spokesperson for the Coordinating Ministry of Maritime Affairs, Jodi Mahardi, when asked for an explanation from CNBC Indonesia, still needed time to explain the plan, he still needed to coordinate with several parties.

Minister of Industry Agus Gumiwang has previously prepared 27 new industrial estates to be built in 2020-2024. One of the areas to be developed by an industrial estate is Brebes, Central Java. Brebes is famous for its onions and salted eggs.

"Of the 27 regions, there are only 2 in Java. One is in Brebes and one is in Madura. The rest, or 25 others are directed in industrial areas outside Java," Agus said.

The Brebes Regency Government has a plan to develop the Brebes Industrial Estate (KIB) covering 3,976 hectares and for the Brebes Industrial Designation Area (KPIB) covering 5,070 hectares. This industrial area will stretch from the districts of Losari, Tanjung to Bulakamba.

In the official records of the Brebes Regency Government, 39 companies operating in various business sectors have registered as occupants of the Brebes Industrial Estate until November 2019. As many as 24 investors have established factories in Brebes Regency, the rest are still in the process of licensing as many as 12 companies until the end of 2019.