Choosing a foreign country as investment location is not an easy task. There are numerous aspects to be taken into consideration, such as the location, the infrastructure and the regulatory environment. In this regard, JIIPE seems to check all the boxes if its growth rate is of any indication. Officially inaugurated as a Special Economic Zone (SEZ) on June 28, 2021, JIIPE recently signed an agreement with PT Freeport Indonesia for the development of the 1.7 million metric ton Manyar copper smelter facility with a total investment value of around US$3 billion (roughly Rp 42.7 trillion). The deal includes an 80-year lease agreement and a shipment-docking infrastructure development complete with jetty, piers, trestle, bridge and seawater intake building. This has resulted in faster growth rate than expected for PT AKR Corporindo Tbk. (AKRA), the company behind JIIPE. As reported by Investor.id, sales of fuel by the company rose 8.2% in the second quarter of 2021 compared to the second quarter of 2020, while the sales of chemical goods rose by 6.2% for the same period. The company has also managed to realize 47% of its land sale target for the first half of this year. JIIPE is a testament to Indonesia’s commitment into becoming an industrial nation. Having dedicated itself to providing investors a more conducive investment climate, Indonesia has established 19 SEZs; from Arun Lhokseumawe in Aceh, North Sumatra, to Sorong in West Papua, with each SEZ designed to specialize in particular sectors. Tanjung Kelayang in Bangka Belitung Islands is designed to serve the tourism sector, while JIIPE in Gresik is designed to specialize in metallurgy, electronic, chemical, energy and logistic sectors. The Indonesian SEZ National Council has mapped the performance of the country’s SEZs, as in which ones are achieving its investment targets and which ones are not developing as fast as hoped. According to data from the Council, as of the end of 2020, at least three SEZs, namely Galang Batang in Riau Islands, Mandalika in West Nusa Tenggara and Kendal in Central Java, are developing nicely. One SEZ, Tanjung Api-Api in South Sumatra is recommended for a revocation of SEZ status due to land procurement issues. Based on the Council’s report, this year, JIIPE’s looks set to be one of the fastest growing SEZs in Indonesia, dwarfing last year’s investment commitments of the three top-performing SEZs mentioned previously. At the end of 2020, Kendal achieved an investment commitment of Rp 19.2 trillion, followed by Galang Batang with Rp 15 trillion, while Sei Mangkei achieved Rp 11.5 trillion. What can investors expect from JIIPE? For one, Gresik is already one of the most developed and well-structured industrial cities in East Java. It is part of the metropolitan area of East Java’s capital Surabaya which covers five major cities in East Java, namely Surabaya, Gresik, Sidoarjo, Mojokerto and Pasuruan. Together they form the Ring 1, the most advanced area of industrial and economic development in East Java. Of the five cities, Gresik is the only industrial area that is directly adjacent to the sea off the island of Java. Ports for transporting goods are generally located in Gresik. Depending on the traffic conditions, the provincial capital can be reached in 1-2 hours. In terms of infrastructure, Gresik is situated at the Madura Strait, which connects several waterways and offers direct access to the most important sea lanes in the region. By land, it can be reached by any mode of land transportation without facing significant obstacles due to adequate road, railway and bridge infrastructure. The infrastructure within JIIPE itself boasts an area of 3,000 hectares which is further divided into three main zones, namely an industrial zone stretching over an area of 1,761 hectares, a port zone that covers an area of 400 hectares and an 800-hectare residential zone. A competitive advantage for JIIPE is its integration with a multipurpose deep seaport which is located only 3.5 km from the factory area, with a pier length of 6,200 meters and a final water depth of -16 meters low water spring (LWS), this port can serve ships up to 100,000 deadweight tonnage (DWT). The volume of cargo that can be handled is targeted to reach 6 million metric tons (MT) per year. JIIPE’s facilities also include dry port integration, a 23-megawatt (MW) power plant, a wastewater treatment plant, fiber-optic telecommunication infrastructure and broadband internet as well as gas pipeline connection and distribution. Its state-of-the-art facilities ensure the parks readiness for Industry 4.0 and sustainable industry practices. Finally, JIIPE offers comprehensive permit services related to land and infrastructure development and investment. Permits such as building permits, environmental impact analysis permits (AMDAL), and operational permits will be handled by JIIPE management under one roof. Business actors do not need to consult different authorities if they have received approval from the Investment Coordinating Board (BKPM). The purchased land can be completed with an agreed instalment scheme if the investor has applied for a land permit before starting production. Owing to the integration of land and sea transport as well as domestic and international connectivity, the operator claims to be able to reduce logistic costs by 18 to 20%. Additionally, goods or products that reach the port for unloading ahead of schedule are also entitled to dispense or discount from the freight cost. Furthermore, as part of the Indonesian government’s incentive for investors, Investments at a minimum of Rp 100 billion benefit from a 10-year corporate income tax exemption, whereas investments of at least Rp 1 trillion enjoy a lifetime exemption for corporate income tax. Furthermore, companies from designated industries are subject to a 30% reduction in net income of the total investment sum or 5% annually for six years on a pro-rate basis. Senior foreign nationals and foreign property holders within JIIPE can be awarded permanent citizenship as an additional incentive for foreign investors. JIIPE offers a strategic and promising industry location for companies who intend to expand their business to Indonesia. EKONID Surabaya, as representation of EKONID operating in the East Java region, will gladly support German companies with information and active support measures in establishing or expanding their business activities in Indonesia, in East Java.
Q1: Could you briefly share with us what the purpose of the SES assignment was for Polman Astra? A1: Politeknik Manufaktur Astra as a higher vocational education institution understands the need to improve the quality of its education. Therefore, in order to achieve it we’re looking up to several countries which has good quality of vocational education, especially Germany as the role model of vocational education in the world with the famous Dual Ausbildung system. In 2019, we’ve heard that EKONID has been appointed as representative for the program of Senior Experten Service (SES). It matched our needs to have a german vocational expertise in order to improve our vocational education program. Q2: How did EKONID as local SES representative support Polman Astra for the preparation and during the assignment? A2: The role of the representative is vital in the implementation of the program, so far representative could manage our internal communication running smoothly. Hopefully, EKONID as the official representative of SES in Indonesia could socialize the program to more institution/company in the near future by doing webinar or talk show. Q3: How would you describe your daily cooperation with the SES expert? A3: The program made it possible for us to gain expertise support from German senior expert who’ve been involved in the industry for years. Hence, in terms of Fachkentnisse (specialized knowledge), the expert is really reliable. Q4: What was the most challenging part and how did you manage to overcome it together with the SES expert? A4: The most challenging part that we were facing was the differences of culture, language, and regulation. Experts that came from Germany might takes time to adapt with those conditions. At the end of the day with cooperation, we could overcome those challenges Q5: What kind of overall benefit did your company get from the assignment of the SES expert? A5: This program is beneficial, the expert provided us recommendation on what to be improved in the planning and implementation of our education program, whether it’s technical and managerial recommendations. Q6: Would you recommend SES to other companies/institutions that might be interested in this program? A6: Of course, this program is really beneficial, especially to those who’s interested in vocational expertise. Furthermore, please keep in mind that the accommodation plays an important role in order to fulfill the requirement of assigning the expert to help your company/institution. Therefore, don’t hesitate to contact representative to provide assistance on this matter. Q7: Since the termination of the SES assignment, which measures did Polman Astra take to fulfill the recommendations that the SES expert gave? A7: We’ve been doing direct and gradual improvement on the basis of recommendation from the expert. We’ve managed to upgrade the quality of our equipment to support the learning and teaching process. On the other hand, gradual improvement that we’re still working on is the managerial and manpower planning
Q: How has the COVID-19 pandemic impact Mercedes-Benz Indonesia and what has the company done to counter the effects of the pandemic such as the public lockdown and the limitations on business operations? A: The pandemic has been a challenge for everyone and Mercedes-Benz as a company has focused its priorities to the safety of its customers, employees and stakeholders. In many areas where possible, we have intensified the digitization of the processes within our daily operations. In the periods, where most of the Mercedes-Benz dealerships had to follow the PSBB or PPKM restrictions, we have adapted our communication channels. To ensure that we can stay in touch with our customers, we have introduced the use of digital solutions such as Mercedes-Benz Virtual Showroom. With the Mercedes-Benz Virtual Showroom we are able to offer ease of access and flexibility of communication with prospect customers who are looking for a new Mercedes-Benz. Q: What are some of the major lessons the company has learned during the pandemic in terms of doing business? How has the company adopted these lessons? A: We have learned that our employees were flexible and mindful to adapt to the new situation and environment, yet at the same time keep providing the highest degree of serving our customers and stakeholders. Despite the challenges, we have managed to introduce new Mercedes-Benz models – such as the locally-assembled A-Class Sedan and GLA - and even celebrated our 50th company anniversary via digital platforms. Q: What are you looking forward to the most once the pandemic is over in doing business in Indonesia? A: We continue to aim for offering Best-Customer-Experience to our customers with our highly advanced products and premium services. At the same time, we are committed to continuing the local assembly of the popular Mercedes-Benz sedans and SUVs at our plant in Wanaherang near Bogor [West Java]. Of course, we will be looking forward to welcoming back our customers at the dealerships as well as at our Mercedes-Benz signature events, such as the MercedesTrophy golf tournament or Star Expo. With the current range of our products, we are optimistic that our customers will soon be able to experience our Mercedes-Benz cars as they are designed for: driving and enjoying them. To read about the production of the new A 200 Sedan Progressive Line and GLA 200 AMG Line, click here
PT Mercedes-Benz Distribution Indonesia introduces the locally-assembled Mercedes-Benz A 200 Sedan Progressive Line and the GLA 200 AMG Line. With the launch of the new A-Class Sedan and the new GLA, Mercedes-Benz now offers the largest portfolio of locally-assembled premium vehicles in Indonesia. The new A-Class, C-Class, E-Class and S-Class sedans and the new GLA, GLC, GLE and GLS SUVs are assembled at the plant of PT Mercedes-Benz Indonesia in Wanaherang, Bogor, West Java. In 2009, the Mercedes-Benz Indonesia factory that is located on an area of 42-hectare, was declared an automotive manufacturer with Eco-Industry certification from TÜV-Rheinland. The new A-Class Sedan and the new GLA are the latest models of the versatile and successful Mercedes-Benz compact cars range. While the A-Class characterizes the compact entry into the world of Mercedes-Benz premium saloon cars, the GLA symbolises the stylish compact SUV. The new A 200 Sedan Progressive Line and the new GLA 200 AMG Line can be ordered from now at the authorized Mercedes-Benz dealerships and online via the Mercedes-Benz Virtual Showroom at www.mercedes-benz.co.id/virtual-showroom while deliveries have started in August 2021. “We are proud to introduce two new locally-assembled Mercedes-Benz models. With the new A-Class Sedan and the new GLA, we continue our commitment to serve our Indonesian customers with high-quality Mercedes-Benz products that are crafted by our proud Indonesian colleagues”, says Choi Duk Jun, President Director, PT Mercedes-Benz Distribution Indonesia. The new A 200 Sedan Progressive Line The A-Class Sedan now comes as A 200 Sedan Progressive Line (4-cylinder, turbocharged, 120 kW/163 hp, 250 Nm); with 7G-DCT dual-clutch transmission, assembled locally in Indonesia. The four-door sedan car has a wheelbase of 2,729 millimeters and the proportions of a dynamic and at the same time compact sedan car with short overhangs at the front and rear. It is at the top of its segment with regard to rear headroom. In addition, the sedan has the familiar A-Class virtues. These include a modern, efficient engine, the high level of safety thanks to state-of-the-art driving assistance systems as found in the S-Class, and the intuitive MBUX – Mercedes-Benz User Experience infotainment system. With a Cd value of 0.22 and a frontal area of 2.19 m², the new A-Class Sedan has the lowest aerodynamic drag of all production vehicles worldwide and thereby defends the world record of the CLA Coupé. The new generation of compact cars has made a key contribution to the rejuvenation and image change of the Mercedes-Benz brand. The A-Class established today's compact car segment of Mercedes-Benz in 1997 and since then more than six million compact car models have already been delivered worldwide. The A-Class Sedan is the latest model that further expands the range of luxury sedans from Mercedes-Benz. A logical addition, because with the C, E and S-Class, Mercedes-Benz has more premium sedan competence than most other manufacturers. Interior design: revolution from within The interior of the new A-Class is completely redefined with its modern, avant-garde look. Mercedes-Benz has taken a completely new approach, revolutionising the compact class from the inside with a new feeling of spaciousness. The unique interior architecture is shaped in particular by the avant-garde design of the dashboard with its completely free-standing Widescreen display. The air vents in a sporty turbine look are another highlight. The Ambient Lighting with its 64 colours accentuates the free-floating impression of the dashboard. The different colours are composed into ten colour worlds to allow an avant-garde lighting display with spectacular colour changes. MBUX - Mercedes-Benz User Experience: unrivalled experience The new A 200 Sedan Progressive Line features the MBUX - Mercedes-Benz User Experience multimedia system. A unique feature of this system is its ability to learn thanks to artificial intelligence. MBUX is customizable and adapts to the user. It thus creates an emotional connection between vehicle, driver and passengers. Moreover, MBUX with Smartphone integration joins the mobile phone with the media system via Apple® CarPlay® and Android Auto®. This seamless integration offers convenient access to the most important applications on the smartphone. Also, apps from third-party service providers such as Spotify can be accessed quickly and easily – accomodating to the younger customer audience of the Mercedes-Benz A-Class. Intelligent Drive: advanced active safety systems The A-Class has the latest Driving Assistance Systems such as the expanded Active Brake Assist. Depending on the situation, it can effectively help to mitigate the consequences of rear-end collisions with slower-moving, stopping or stationary vehicles ahead, and even with crossing pedestrians and cyclists, or prevent them altogether. Further Driving Assistance Systems include Cruise control and Active Parking Assist with PARKTRONIC and reversing camera ensure safe and convenient operation while parking the vehicle. Passive safety: highly stable passenger compartment and modern restraint systems The new A-Class is equipped with driver and front passenger airbags, a driver's knee airbag and window airbags as standard. Unlike in many competing models, the window airbag also covers the A-pillar for more complete passenger protection. The new A 200 Sedan Progressive Line with recommended price of IDR 751,000,000 (off-the-road). The new Mercedes-Benz GLA 200 AMG Line: more sportiness, more space, more safety Now assembled locally at PT Mercedes-Benz Indonesia, the new GLA 200 AMG Line rounds off the current compact car generation from Mercedes-Benz. At the same time, it represents the entry level into the brand’s successful family of SUV models. The new GLA makes a further step in terms of safety courtesy of its driving assistance systems with cooperative driver support. The standard equipment of the Driving Assistance Systems includes Active Brake Assist, Active Parking Assist, Attention Assist and debuting in the new GLA: Blind Spot Assist with exit warning function alerting the driver to approaching cyclists or vehicles. The GLA is able to react when the driver doesn’t. Recommended retail price of GLA 200 AMG Line: Rp. 761,000,000 (off-the-road) Self-assured and dynamic: the exterior design with AMG bodystyling The front section flows over the A-pillar into the visually compact greenhouse. The side and rear views are characterized by the muscular shoulders of the vehicle. The doors reach over the sills, thereby on the one hand improving ease of access, while at the same time keeping the door frames (and thus also the occupants’ trousers) free of dirt and improving impact protection in the event of a side collision. All-round protective cladding adds structure to the overall proportions and emphasizes the vehicle’s off-road character, as does the simulated underride guard at the front and rear. Moreover, the 19-inch AMG 5-twin-spoke light-alloy-wheels, AMG bodystyling exterior including front and rear bumper, front grille with diamond pattern, adds more dynamism to the overall impression of the GLA. Neat and clean: the new car wash function As the first model in its class to do so, the GLA features a car wash function, a familiar feature from its big brother, the GLS. With just one command, the exterior mirrors are folded in and the side windows and sliding roof closed. The information from the rain sensor is supressed so that the windscreen wipers remain switched off in the car wash. The climate control switches to air-recirculation mode and, after a few seconds, the car wash function assists the driver when driving into the car wash. These settings are automatically deactivated when the driver drives out of the car wash and accelerates to a speed above 20 km/h.
Indonesia's impressive socioeconomic development over the past two decades has brought with it significant environmental impacts. The persistent lack of urban infrastructure results in widespread traffic congestion and excessive pressure on power grids and water supplies. The majority of the country's solid waste ends up in unsolicited landfills, where this untreated waste generates huge amounts of methane, an 82 times stronger greenhouse gas than carbon dioxide. Given these circumstances, the launch of the Green Infrastructure Initiative (GII) was agreed as part of the Indonesian-German bilateral Governmental Negotiations in Berlin on October 1, 2019. The Coordinating Ministry for Maritime Affairs and Investment (CMMAI) and the Committee for the Acceleration of Priority Infrastructure Delivery (KPPIP) were mandated to coordinate and accelerate the planning and implementation of priority infrastructure projects. The GII comprises a five-year Financial Cooperation (FC) facility of up to EUR 2.5 billion to support environmentally and/or climate-relevant infrastructure projects via subsidized and promotional loans from the German Development Bank (KfW) for investments to promote green infrastructure in Indonesia in three thematic sectors: Waste Management, Water and Wastewater Management, and Urban Public Transport. Not yet have partners to participate in the GII tender? No problem! Sign up for our B2B matchmaking and find partners that match your criteria for free! Steps to join: 1. Register your company via our B2B matchmaking form and upload your relevant documents 2. Select sectors your matching partners should specialize in 3. The list of potential partners identified by EKONID and KADIN will be provided within 2 working days Please visit the EKONID GII page regularly for the latest information on GII! For more information, please visit the link below: Green Infrastructure Initiative Tender Green Infrastructure Initiative flyer Green Infrastructure Initiative presentation Contact: registration@ekonid.id