JAKARTA - The Investment Coordinating Board is optimistic it can offer affordable land in the Batang Industrial Area, Central Java.
According to the Board’s acting Deputy for Investment Planning Nurul Ichwan, the price of land in the Batang Industrial Area will compete with the price of land in Vietnamese industrial areas.
Currently the average price of industrial area land in Indonesia stands at Rp 3 million per metre square, while Vietnam offers industrial area land for Rp 1,2 million per metre square.
“We aim to offer land in Batang for no higher than the benchmark price, or even cheaper if possible,” Mr Ichwan told Koran Tempo, Monday (27/7).
An affordable price, Mr Ichwan said, can be realised due to the land being owned by PT Perkebunan Nusantara (PTPN) IX, and thus the area’s managers will not need to finance land acquisition.
In addition, facility provisions in the Batang Industrial Area will be assisted by the State Budget because the area is categorised as a Strategic National Project.
“Investment of the area’s managers will be low, so they can offer a more affordable price,” said Mr Ichwan. (MS)