The Batang Industropolis Special Economic Zone (KEK) in Central Java is gaining momentum as a magnet for foreign and domestic investment. With six new companies committing over Rp456 billion in early Q4 2025, the zone is evolving into a modern, integrated manufacturing and lifestyle ecosystem. This surge signals growing investor confidence in Indonesia’s industrial policy and regional development strategy.
Key Facts & Background
- KEK Industropolis Batang, part of Danareksa’s SOE Holding, secured Rp456.76 billion in new investments from six companies in early Q4 2025.
- The investments span manufacturing, food & beverage, furniture, and mixed-use commercial facilities, reflecting sectoral diversification.
- PT San Bao Canyin will build a restaurant on 2,002 m² with Rp4.3 billion investment, construction starts Nov 2025, operational by Feb 2026.
- PT Cinlong Culinary Indonesia invests Rp717 million for a restaurant on 598 m², construction begins Dec 2025, operational by June 2026.
- PT WKI, a Chinese footwear component manufacturer and supplier to Nike, Adidas, Puma, invests Rp120 billion on 16,440 m², construction starts Apr 2026, operational by June 2027.
- PT Novatex Industry Indonesia invests Rp102 billion for an eco-friendly yarn plant on 2.4 hectares, targeting 4,000 tons/year with 95% export orientation.
- PT Woodpark Mebel Indonesia, a subsidiary of Singapore’s Mitragreen Industry, invests Rp225 billion for a furniture factory, operational by Apr 2027.
- PT ISNI Teknologi Konstruksi Indonesia invests Rp4 billion for a 3,792 m² mixed-use facility combining office and restaurant functions.
- The zone integrates industrial, hospitality, and lifestyle infrastructure, aiming to become a modern, internationally competitive production platform.
Strategic Insights
The latest wave of investment into KEK Industropolis Batang reflects a strategic convergence of industrial policy, regional development, and investor confidence. By attracting a mix of labor-intensive, export-oriented, and lifestyle-focused enterprises, the zone is positioning itself as a multi-sectoral growth engine for Central Java and beyond.
The entry of PT WKI, a supplier to global footwear brands, is particularly significant. It not only brings high employment potential (1,000 jobs) but also contributes to import substitution, reducing Indonesia’s reliance on foreign components. This aligns with national goals to strengthen domestic manufacturing capabilities and enhance supply chain resilience.
Meanwhile, the presence of eco-conscious players like PT Novatex signals a shift toward sustainable industrial practices. With 95% of its output destined for export, the company reinforces Indonesia’s ambition to become a green manufacturing hub in Southeast Asia. This complements broader ESG trends and positions Batang as a destination for responsible investment.
The inclusion of F&B and mixed-use tenants such as PT San Bao Canyin and PT ISNI Teknologi Konstruksi Indonesia reflects a deliberate strategy to humanize the industrial zone, making it not just a production site but a livable, vibrant community. This mirrors global best practices in industrial urbanism, where worker welfare and lifestyle amenities are integral to long-term viability.
From a policy perspective, KEK Industropolis Batang exemplifies the effectiveness of Special Economic Zones (SEZs) as instruments for foreign direct investment (FDI) attraction and regional economic upliftment. The zone’s integration into Danareksa’s SOE Holding provides institutional backing and governance stability, enhancing its appeal to global investors.