Batam and Mindan industrial zones provide convenience for Chinese enterprises to settle in Indonesia

"At first, in order to avoid the impact of the Sino US trade war, some Chinese enterprises tried to build factories in Batam indu Industrial Park. At first, they only rented factories of more than several hundred square meters and recruited dozens of employees. However, it was found that there is a good business environment here. Now the factory area of Chinese enterprises here exceeds 30000 square meters and the scale of workers exceeds 2000. " Lai Junjie, director of liaonei Investment Promotion Department of Galant venture (GV Indonesia), said.

With the geographical advantage of being adjacent to the international port Singapore, Indonesia has built Batam indu Industrial Park and Mindan Industrial Zone on Batam Island and Mindan Island respectively. The two parks are the production bases of many multinational enterprises. GV Indonesia has long provided services for multinational enterprises to settle in these two parks.

Lai Junjie introduced that the existing standard plant in Batam indu Industrial Park covers an area of 320 hectares. The plant has various styles for enterprises to choose to settle down, and has perfect infrastructure in power supply, sewage treatment and international communication to meet the needs of manufacturing enterprises. There are also concentrated industries such as electronics, assembly, printing and packaging, warehousing and logistics in the park to meet the production demand.

In the process of enterprise settlement, Mindan industrial zone provides one-stop services such as human management and recruitment, business application procedures, logistics services, security and property management. The industrial zone has a marine center, which is conducive to the settlement of marine industrial enterprises. The first private airport under construction in Indonesia can provide domestic and regional routes after completion, with an annual capacity of 3.5 million passengers.

Batam indu Industrial Park and Mindan industrial zone have become important investment attraction places in Indonesia and have been given national security protection. Batam Island, Mindan island and kalibun island are designated as duty-free special economic zones, which are free of import tax, luxury tax and many other concessions. Batam Island and Mindan island also continue to deepen cooperation with Singapore. Singapore provides highly skilled human and financial resources, while Batam Island and Mindan Island provide land and ordinary human resources.

In order to attract foreign investment, Indonesia is implementing a new tax holiday plan. For enterprises in 18 industries such as oil and steam refining, petrochemical, pharmaceutical raw materials, automobile and ship parts, the income tax will be reduced or exempted according to the investment scale of idr100 billion to idr30 trillion and the investment duration of 1 to 20 years.

Many multinational enterprises first pay attention to recruitment when they invest in Indonesia. Lai Junjie said, "Indonesia has a rich labor force, so enterprises don't have to worry about recruitment difficulties. Moreover, the labor cost is low. According to the minimum wage standard in 2021, Batam Island is IDR 4150930 (RMB 1848) / month, and Mindan island is IDR 3648714 (RMB 1624) / month. "

However, Lai Junjie suggested that the management of local employees must pay attention to respecting the religious beliefs of local people, and hire local people as the manager of the personnel department“ In Indonesia, many people can speak Chinese, which provides great convenience for Chinese enterprises to settle down. Compared with other countries, it is easier for enterprises to manage locally recruited employees. "

Lai Junjie said that enterprises do not have to worry about the impact of the epidemic. The new normal measures taken by the two industrial parks, such as rapid temperature detection and maintaining a safe distance, have effectively guaranteed the normal operation in the park. Mindan island is a tourist destination. After the outbreak, the government's health policy was strictly implemented, and its cleaning, health, safety and environmental sustainability measures were implemented very well.

Source: China Trade News