ITOCHU Announces Development and Expansion of Business in Karawang International Industrial City, Indonesia
October 12, 2021
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter "ITOCHU") announced today that it has acquired an additional 105 hectares of land for development in Karawang International Industrial City (Jakarta; hereinafter "KIIC"), developed and managed on the outskirts of Jakarta, Indonesia. Work has commenced to clear the land.
Situated 60 km east of the Jakarta CBD, KIIC has been operated since 1992 as a joint venture by ITOCHU and Sinar Mas Group, an Indonesian conglomerate. Approximately 170 companies, mainly consisting of Japanese companies, are operating factories in a total existing area of 1,400 hectares.
With the mission to "prepare an environment where the tenants can devote their undivided attention to their own businesses," the industrial park has been offering first-class services for the past 30 years by providing high-quality infrastructure such as electricity, water and roads, together support of an intangible nature such as security and useful information for factory operations. Moreover, joint initiatives with tenants have been made for harmonious coexistence with the local community through efforts to promote the employment of local residents and the donation of scholarships and disaster relief, etc., in addition to measures for the environment such as the switching of street lights to LED and the use of solar power in the water facilities. These efforts have earned high marks, and Karawang International Industrial City has won the Indonesian government Ministry of Industry’s award for best industrial park.
Sales to Chinese, South Korean and Taiwanese companies have been made in addition to Japanese companies, traditionally the main customers in this area, as these companies have increased their presence in Indonesia in the recent years. Leveraging the advantage of being able to provide stable infrastructure resistant to floods and other disasters, sales are also focused on operation risk-sensitive businesses (data centers, etc.). Although the work to clear the land is scheduled to be completed in the first half of 2023, some sections will be available for delivery to tenants before the completion of the park.
ITOCHU is planning to deploy the know-how in industrial real estate (such as logistics facilities) development it has cultivated in Japan to the wider Asian region. It will continue contributing to tenants' businesses by using the ITOCHU Group's extensive management resources and know-how, while managing and administrating high-quality industrial parks.
Karawang International Industrial City
Website ： https://www.kiic.co.id/