JIIPE has been appointed as Indonesia Special Economic Zone (SEZ) by the President of Indonesia in 2021. JIIPE as Indonesia SEZ is a National Strategic Project that will cater to the needs of Industry 4.0. It provides superior connectivity with multimodal transportation, connected deep seaport, one-stop complete utility, environmental permit, and fast construction permit.
Special Economic Zone (SEZ) status will provide additional incentives to investors. The benefits include lower income tax and customs tax. Nonfiscal incentives include 1-door approval and licensing, ease of passage of goods, and flexibility in employment. The Integration of JIIPE facilities, strategic location, and SEZ status will encourage the achievement of the government's target to reduce logistics and other operational costs and make Indonesia an attractive investment destination.
The availability of utilities needed by industry such as power plants, Industrial freshwater, waste management, gas supply, and telecommunication networks, makes JIIPE become a major investment destination in Indonesia. JIIPE has brought in17 tenants, including Bank of Indonesia and a mining company, PT Freeport Indonesia as the latest tenants.
JIIPE, the most strategic investment destination in Indonesia
Indonesia is the fourth most populous country in the world with a young workforce and a large and growing domestic market due to the demographic bonus, making Indonesia one of the world’s leading economies. Despite heightened global uncertainty, Indonesia’s economic outlook continues to be positive, with domestic demand being the main driver of growth. As the only G-20 member in Southeast Asia and an active voice to develop world concerns, Indonesia plays a more significant role on the global stage. Standard Chartered foresees Indonesia’s entry into the G-7 by 2030 and projects that the Indonesian economy could become the 10th largest by 2020 and the 5th largest by 2030. Being the world’s 3rd largest flourishing democracy with the largest Muslim population, Indonesia has a stable policy situation with a high commitment to implement structural reforms. Worldwide Governance Indicators Survey conducted by World Bank indicated that Indonesia has improvements in several indicators such as Government Effectiveness, Regulatory Quality, and Control of Corruption.
To establish a foreign direct investment company in Indonesia you must first decide what business sector you are going to invest in based on Klasifikasi Baku Lapangan Usaha Indonesia “KBLI” (Indonesian Classification for Business Sector). Then, you must check whether the business sector is open with requirements or closed for foreign direct investment based on Presidential Regulation No. 44 the Year 2016 about “DNI” (Negative Investment List). If the business sector in which you are interested is not regulated, and no other restrictions from related technical ministries, then it means the business sector is open for foreign direct investment with maximum foreign ownership of 100%. The legal entity of the FDI Company should be a Limited Liability Company or Ltd. Perseroan Terbatas or PT. The ‘PT’ company should be owned by a minimum of 2 shareholders. Those can be individual or corporate shareholders or a combination of both.
|Yes, you can set up a company in any part of Indonesia. However, there are restrictions for some business sectors in certain regions, Industrial Law No. 3 the Year 2014 and Government Regulation No. 142 the Year 2015 have mandated that any industrial activities shall be located in industrial estates. Today, the Indonesian Industrial Estates Association (Himpunan Kawasan Industri Indonesia or HKI) has 87 company members, in 18 provinces, covering a total gross area of about 86,059 hectares. There are more than 9,950 manufacturing companies operating and these figures do not include industrial estates or non-HKI members. The main attractions of industrial estates are that the development is comprehensively planned to assure a strategic location, accessibility, building ratio, infrastructure, and supporting services, secured land titles, and continuous maintenance and operation management, as well as integrated environmental management.|
|A thriving industrial estate currently at center stage is Java Integrated Industrial and Port Estate (JIIPE), located in Gresik, East Java-Indonesia, a province whose economic growth is largely driven by trade and industry. With a total area of 3,000 hectares, comprising industrial estates, multifunctional public ports, and residential cities. The JIIPE industrial area covers 1,761 hectares with 400 hectares of deep seaport facilities and 800 hectares of a residential area with the concept of an independent and green city.|
|JIIPE, Gresik SEZ (Special Economic Zone) has been officially ratified as a Technology & Manufacturing SEZ through Government Regulation (PP) No. 71 of 2021 dated June 28, 2021, signed by the President of the Republic of Indonesia, Joko Widodo. The appointment of JIIPE as a Technology & Manufacturing SEZ as one of the most competitive Industrial Estates and in demand by industry players in this region. SEZ Gresik JIIPE a National Strategic Project that will cater to the needs of Industry 4.0. It provides superior connectivity with multimodal transportation, connected deep seaport, 1 stop complete utility, environmental permit with 1 door AMDAL, and fast construction permit through the KLIK facility. SEZ status will provide additional incentives to investors. The benefits include lower income tax and customs tax. NonFiscal incentives include 1-door approval and licensing, ease of passage of goods, and flexibility in employment. The Integration of JIIPE facilities, strategic location, and SEZ status will encourage the achievement of the government's target to reduce logistics and other operational costs and make Indonesia an attractive investment destination.|
|For prospective buyers, you can easily fill out the quick appointment form via this link, and then our sales team will contact you further.|
|The availability of utilities needed by industry such as power plants, clean water and waste management, gas supply, telecommunication networks, and multimodal transportation makes the Gresik JIIPE SEZ become part of the development of industry 4.0. Where industry 4.0 combines information technology with industry. JIIPE has become a major investment destination in East Java and provides solutions for increasing industrial competitiveness in Indonesia. An environmentally friendly industrial area of 1,761 hectares is based on the type of industry.|
|The Gresik JIIPE SEZ is equipped with 400 hectares of deep seaport area which is strategically located in the Madura Strait and part of the Surabaya Port Area. With a total pier length of 6,200m and seawater depth of -16 m LWS, JIIPE Gresik SEZ can serve ships up to 150,000 DWT. This port has been operating since 2015 and is targeted to handle cargo of up to 6 million MT per year. Currently, the port has entered the 2nd phase of development: Jetty expansion from 30x250 m to 50x500 m. The port, which is about three kilometers from the industrial area, plus the five-lane highway, enables transported goods or products to reach the harbor punctually and even earlier than scheduled|
Currently, JIIPE has 17 tenants from the chemical processing, food, construction, and smelter industries
PHASE 1 (fully developed and available)
ELECTRICITY: 23 MW Dual Fuel Power Plant (Gas & liquid fuel oil)
INDUSTRIAL FRESHWATER :100 m3/hour /( 2400 m3/day ) – Sea Water Reverse Osmosis (SWRO) facility and 1500 m3/day from BWRO facility (Recycle)
WASTEWATER TREATMENT PLANT: 2500 m3/day (MBR Technology)
NATURAL GAS PIPELINE: Capacity up to 85 MMSCFD
ELECTRICITY: 250 MW Dual-source, Dual feeder (Will be ready in 2023) and 250 MW Dual-source, Dual feeder (Will be ready in 2025)
INDUSTRIAL FRESHWATER: 600 lps or 2160 m3/hour ( 51840 m3/day)
ELECTRICITY: 660 MW
RENEWABLE ENERGY: Gas/ LNG to match demand
INDUSTRIAL FRESHWATER: 1000 lps ( 86,400m3/day )
UTILITY CENTER for ICTInternet & Telecommunication Service with Fiber Optic Cables – Gigabyte enabled and BTS Tower for cellular communication
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