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Java Integrated Industrial and Ports Estate (JIIPE), The First Integrated Industrial Estate in Indonesia, The Largest in East Java, was Inaugurated by President RI

09 March 2018

Jakarta, 9 Mar 2018 – Java Integrated Industrial and Ports Estate (JIIPE), the largest and the first integrated industrial estate in East Java and in Indonesia, which integrates ports, industries, and residences, as well as connected by highway and railway network, was officially inaugurated by the President of Indonesia, Joko Widodo, on March 9th  2018, in Gresik-East Java. The inauguration entitled "Real Work to Build the Country" is marked by siren sound, followed by inscription signing for both JIIPE and the ships supporting the sea highway program.

Mr. President Jokowi expressed his excitement before inaugurating JIIPE, "JIIPE is developed as an area that can absorb large number of workers including graduates from Islamic boarding school and investment. It is also an estate model that can generate import-export activities in a way that is more faster and efficient. The concept of integrated industrial, port and utilities in one area which was developed through joint ventures between private company and state-owned enterprises, should be emulated by others so that infrastructure development can be implemented faster. I expect this kind of industrial estates to be launched more in our country."

President Director of PT. AKR Corporindo Tbk, Haryanto Adikoesoemo, in his statement, "This industrial estate is a mega project that we have planned from several years ago. By integrating deep sea port, it will have direct access to domestic and international markets so that we can support the Indonesian economy. JIIPE was developed to realize the vision of President Jokowi, which consists of reducing logistics and utilities costs, developing sea highway, and simplifying the investment process. We believe in the next 10 years we can absorb up to 300,000 manpower, so then JIIPE will able to contribute in Indonesia economic development. In addition, by the development of residential areas with educational and entertainment facilities, we are expecting to provide excellent quality of life for the people who work in this area”. By these complete facilities, JIIPE will be able to become an independent industrial city.

President Director of Pelindo III, Ari Ashkara also added that capital investment to build facilities in JIIPE has reached almost 5 trillion rupiah, with contribution from PT. AKR Corporindo Tbk and PT Pelabuhan Indonesia III is based on their equity portions. JIIPE development is expected to be completed in 15 years.

JIIPE became the largest industrial estate in East Java and located in Gresik City, only 24 km from Surabaya, the economic and investment center of East Java. This integrated industrial and port estate was jointly developed by PT Berkah Manyar Sejahtera (BKMS), which is responsible for the development of an industrial estate and PT Berlian Manyar Sejahtera (BMS), which is responsible for port management. Both BKMS and BMS are joint venture companies of PT. AKR Corporindo Tbk through its subsidiary PT Usaha Era Pratama Nusantara and PT Pelabuhan Indonesia III through PT Berlian Jasa Terminal Indonesia, with different share portion.

On the same occasion, Minister of Industry RI Airlangga Hartato said that JIIPE was a model of third generation industrial estate which is industrial estate that equipped with reliable infra and supra structure that integrated with port, and not only environmentally friendly, but also is innovative toward the realization of new industrial city. To support the operation of JIIPE Industrial Estate, some infrastructures still need to be added and developed, such as the widening of Daendels Street, 11 km of railway connections from Sampeyan Station to JIIPE location, and Krian-Legundi-Bunder-Manyar Highway.

 

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