09 Jul Three SOEs team up to develop industrial estates in Subang …
Three state-owned enterprises (SOEs) have signed a memorandum of understanding (MoU) to develop four industrial estates in Subang, West Java, a regency that is undergoing major infrastructure development and will soon boast its own airport and seaport.
The three SOEs are construction company PT Wijaya Karya (Wika), diversified manufacturing company PT Rajawali Nusantara Indonesia (RNI) and plantation company PT Perkebunan Nusantara VIII (PTPN VIII).
“We’ve agreed to establish an investment partnership for developing industrial estates on a total area of more than 11,000 hectares in Subang,” Wika president director Tumiyana said last week, adding that they would set up a joint venture and start construction in the second half of 2019.
Tumiyana said Subang had very good prospects for industrial development because the regency, Majalengka and Cirebon had been designated by the government as a growth triangle to create one of the largest special economic zones (KEK) in Indonesia.
“Subang has great economic potential as it is close to the new Kertajati International Airport and the Patimban deep-sea port, which will begin operating later this year,” he said.
He said two of the four industrial estates would be constructed on two plots of land measuring 3,700 ha and 3,300 ha, which are owned by PTPN VIII, and two other plots of land measuring 5,249 ha and 11,300 ha owned by RNI.
He added that the industrial estates would include residential areas, commercial buildings and other public facilities, as well as infrastructures like roads, and water and gas pipelines.
The project is planned to be gradually developed within 50 years with a total investment of Rp 2.7 quadrillion (US$191.25 billion). (nal/bbn)