10/14/12

Prospect of Invesment in Karawang Regency

     As an industrial development region, Karawang Regency has good prospect for investment. It is discernible through the investment prospect based on the potentials of the region or infrastructures it has. The development of economic activities particularly on industry entails representative supporting infrastructure. Based on Planned Regional Layout, regional government of Karawang attentively enhances infrastructures to support economic activities that can boost the investors to invest their capitals in Karawang Regency. Apart from development of infrastructures, regional government constantly adjusts various regional regulations according to the authority governed in the Law No. 32 / 2004 on Regional Autonomy and other various regulations of central government.

          The regional government, for instance, provides the land allocated for industry at 19.005,2 ha and the attaching net-road and connects to the growing business and productions hubs. Such net-road condition is relatively representative to support the activity of business world. Apart from the infrastructure of road, telecommunication network is constantly improved since it plays pivotal role for business communication. The abundance of water and ubiquitous presence of various natural resources are part of factors that may boost investment in Karawang Regency. In addition to that, other factors that may influence the interest of investors are stabilized security, the availability of human resources, uncomplicated, effective and efficient bureaucratic service, accompanied by simple procedure for business licenses.
          In the efforts to meet the growing demand for the best service in line with the global economic change, the government of Karawang Regency constantly reorganizes itself to be the ideal destination for investors to invest. Given to the general condition above, good prospect for investment in Karawang is described in the below-mentioned points;

Industrial Development
Out of the 19.005,1 Ha allocated for industry, only about 695,7 ha or 12 % is presently utilized. It means that about 18.345,4 Ha is available.  Some parts of the allocated land are available under the management of area developer. They are ready to build with adequate supporting infrastructures.
Details of the composition of allocated land provided for industrial region, industrial city and industrial zone are as follows:
·         The number of Area                                      : 19 Regions
·         The area of industrial region                                       :  5.837,5   Ha
·         The area of industrial zone                                :     3.000   Ha
·         The area of special region /industrial city             :  9.477,5   Ha
·         The area of industrial region already built             :     695,7   Ha (12 %)
·         The area of the technical rice-field                      :   93.000   Ha
A.   Developing marginal land
Industrial region
Out of 5.837,5 Ha, 2.250 Ha has been allocated for 19 companies, of which 9 have operated and 111 units of factory have been built. 3.587,50 Ha is not used yet, but representative infrastructures have been provided and managed in professional manner. 

Industrial Zone
Out of 5.117,6 Ha allocated for industrial zone, 2.442,8 Ha or 47,7 %. Has been used for 298 companies, of which 223 units have operated. 2.674,80 Ha is not used yet.

Industrial City
8.100 Ha has been allocated for three companies. At present, two industrial regions have operated on the area of 700 Ha, with 48 units of factories. The unused area of the region is 7.400 Ha.
The above explanation shows that the business potential of industrial sector is still open to develop.

B.   The use of non-productive region
In the southern part of Karawang, rightly in the district of Pangkalan, about 100 Ha is non-productive land and the land of ex HPL. Such land is distinct with sort of its ground, texture, PH and topography which are suitable for agriculture and plantation. The plants suitable for this area are abaca banana and best quality fruits. 

C.   The development of businesses of service and trade 
Apart from the industrial activity, trade sector is worth to be noticed where there are 727 and 17.982 large and small scale trades respectively. Given the increasing economic and demographic growth of the region, the development of the business of trade and service is still widely open. This condition has boosted the people's purchasing power that indicates market potentials for business in trade and service.
Besides the opportunity for development of investment in industrial and trade sectors, natural resources, diversity of biological lives and supporting infrastructure for industry entail the participation of investors to develop the region for business to support the main economic activity i.e.  Agriculture and Industry. The below-mentioned are open for investment.

a.    Constructing Cikampek bus station  
The development of infrastructures particularly transportation is the top priority, given the strategic location of Cikampek City (karawang) for it is the crossroad of Jakarta – Cirebon and  Jakarta – Bandung, routes. Department of Transportation has decided that the station planned to build in Cikampek is a type “A” station, one that serves inter-city, inter-province (AKAP), inter-city within the province (AKDP) public transportations, city transportation (AK) and rural transportation (ADES).
Besides, the present Cikampek bus station is no longer suitable and appropriate, in terms of location, quality or capacity. As such, it is a dire need to build a standard bus station in the efforts to enhance services to the society. 

b.   Rice Stock Market
Karawang Regency is the supplier of rice at national level and it is to date considered as the rice-barn of West Java,  the area of rice-field reaches 89,596 Ha, while the area of region each year reaches about 180.520 ha, and its average product is about 968.506 ton
The problem faced by Karawang as the largest producer of rice is that it did not yet maximize its potentials resulted from its abundant product of rice. In fact, it has been utilized by other regions.  This is discernable from the labels of rice-product in other region which are originally from Karawang Regency.
Given to this and the increasing demand from the rice-trader in Karawang, it is a dire need to build a rice stock market in big capacity which is hoped to be able to control the basic price of padi and rice, be it local or national.
The exact location of the centralized market of rice is planned to be in the region of Karawang Sub-regency. 

c.    Shipping Container Terminal
The issuance of Presidential Decree No. 59 on the Industrial Region in Karawang Regency plus the burgeoning industrial growth, be it the region or zone of industry, led to good result in export of industrial product and import of raw material. As such, it is a dire need to build adequate supporting infrastructures the priority of which is terminal for shipping container. Given the present location of the region and zone of industry, the alternative location for shipping container terminal is planned to be in the district of Klari. 

d.    The Cargo Terminal
Karawang Regency which is at the crossroad of the routes of big cities  (Bandung, Jakarta, Central Java), soon needs the safe and comfortable infrastructures especially for the transportation by truck which carry goods to Jakarta from east direction (Central Java – East Java) and south direction (Bandung) which goes through the region of Karawang, for the frequency of traffic of trucks that carry goods from and to direction of such regions above, through the region of Karawang is relative high (about 2000 trucks per day). The transportation of trucks cannot all enter Jakarta every time; they should wait for the time allowed to enter Jakarta. Some of them take a rest along the sides of road, beginning from the region of sub-regency Jatisari to the sub-regency of karawang.
The presence of such trucks devastates shoulders of road and may create trouble to the traffic lines. To overcome it, it is a dire need to build cargo terminal. This may serve as parking area for the trucks which is completed with supporting facilities like restaurant, workshop, Musholla and the place for rest. The alternative location planned to be the cargo terminal lies in the region of district of Jatisari. 

e.    Integrated Terminal
The Programs of development as mentioned above can be accomplished in various places separately or concentrated in one place known as integrated terminal. The terminal might be built in the region of Karawang, particularly in the region of Cikampek district for it is the gate of the route to Jakarta from the eastern part.
The possible location for the integrated terminal is at the cross road of toll Jakarta-Cikampek-Cirebon and Jakarta-Cikampek Bandung. The planned integrated terminal would not only serve the interests of the region but also those of national, hence its development entails coordination with agencies concerned at the central as well as regional level. 

f.     Constructing the port for shipping containers
Along with the increased regional authority (regency), the construction of the port in the region is a proper project. Karawang Regency with the coast (57 km), longer than other regency that is in the north seashore of West Java Province, has the potential to construct the port. This long coast can be utilized as the element to offer significant contribution for the macro economic development in Karawang Regency.
At present, the coast is not utilized for various economic activities. Fishbond production is not so developed. Several TPI (Tempat Pelelangan Ikan), Fish Auction Site, are empty of the sale of fishes caught by the fishermen. The presence big port may boost the development of economic activities.
The establishment of the port in the region of Karawang Regency can attract many transactions of the national or international trade that at present occur in Jakarta (Tanjung Priok). The advantage to be obtained is, among others, the reduction of distance for distribution. At present, the distance covered for delivery of goods from and to Priangan regions (Bandung and its surroundings) can shortened. Besides, the services may be rendered for several industries located in regions of Purwakarta, Subang dan Karawang (PURWASUKA).
g.    Mineral Water Treatment
Karawang Regency has three water resources potential enough to be developed as the bottled mineral water with the best quality. Those three water resources are:
a.    The Ciburial water resource with the capacity of 10 liter/second. It is just utilized by PDAM of Karawang Regency for 4 liter/second, to serve consumers for about 1.163 SL and 27 KU, scattered in 4 villages.
b.    Curug Cigentis water resource with the capacity of 300 liter/second. It’s used for rural district about 40 liter/second to serve 4 villages.
c.    The water source in Cinapel the village of Cignungsari + 20 liter / second is used by the people for agricultural needs. Out of such water potentials, about 50 liter/second is just used for the rural district drinking water and PDAM of Karawang Regency, the rest about 280 liter/second has not been used yet, either for the need of clean water or other bottled water.

h.   The sand mining
Apart from maritime tourism potentials, Karawang Regency is also rich with the sea-resource potentials such as the sea-sand with deposit about 200 million m3 scattered in the regions of muara pantai in Muara Bungin, Pakis Jaya, Tempuran and Cilamaya.

i.     Agro-business and agro-Industry
·         Cold Storage
Karawang Region has the span of beach for about 57 km and full of mangrove forest + 8.736 ha and coastal pond + 8.000 ha. Thus, it has a very good potential for fish catching and cultivation of coastal pond.
The fish and shrimp products in 2000 have recorded + 10.519,9 tons with the value of product for Rp. 47.486.354.410,00
The processing of fishes and shrimps products needs to be supported by the system of cold Storage. Location of this factory is better near the hubs of fish and shrimp products i.e. in Districts of Pedes, Pakisjaya, and Cilamaya.
·         The Industry of Animal Feed-made Fish
The potentials of spoilt and mediocre fish catching and their utilization in Karawang especially in the coastal areas are high. This could be developed as animal feed made from fish. This animal feed could fill oversea and domestic markets. The raw materials for this are fished called rucah and fish with low quality. The location for this animal feed industry is planned to be in Pedes Sub-regency.
·         Disseminated Rice Seedbed
The investment planning in the disseminated rice seedbed is conducted to meet the regional need for rice seedbed in every planting season. Currently, the need of for rice seedbed is met by Perum Sanghyang Sri from Sukamandi in Subang for 1.000.000 kg/planting season, while the need for seedbed is 2.250.000 kg for every planting season in Karawang Regency. Thus it always suffers from lack of padi seedbed.
The location in for investment is in District of Talagasari, with the area of 200 ha with the system of technical irrigation.
·         Cultivation of Mushroom
Karawang is well known as the rice barn and as the great producer of mushroom in West Java to the extent that it can produce 3.000 kubung. The producers of merang mushroom in Karawang Regency are facing numerous problems among which are the easily spoilt fresh mushroom of merang and difficulty to get the quality seed of merang mushroom. The needs for seed of merang mushroom are mostly met by other regions.
The cultivation of mushroom in Karawang Regency has developed very fast. It is due to the abundance of jerami padi as media of Jamur Merang. Jamur Merang has high economic value. In order that jamur merang has added value, it needs to be further developed through processing industry such as: Jamur Kalengan, Tepung Jamur, keripik Jamur. Moreover, international market demand is good enough such as USA, Korea, and Asean countries.
·         The hatch of duck’s eggs
The egg of duck is a food containing high protein source. The market demand of inside and outside Karawang is high enough. To meet the need of quality duck’s eggs, it needs the development of duck-breeding. It also means that the production of good quality eggs needs quality source of duck. The location planned to support this business is district of Cilamaya, Jatisarii and  Cikampek. Other sorts of business that can be developed from duck-breeding are cultivating male-duck in districts of Batujaya, Rawamerta and  Rengasdengklok, while production of salted eggs is in districts of Jatisari, Karawang and Rengasdengklok.
·         Domestication of beef cattle
The need for beef cattle in Regency of Karawang is relatively high, about 18.000 per year.  To meet such need, 90, 30 % is still imported from outside regency. 
Such condition shows that business of domestication of beef cattle is prospective. The investment and the business-pattern expected is a group called PIR (perusahaan inti rakyat), People's Core Business, of domestication of beef cattle in cooperation with private companies particularly in matter of applying capital to the bank that serves as creditor. The company serves as supplier of cattle and little cattle. Thus, the payment of the credit is guaranteed by the companies concerned.
The location planned for this business is in district of Pangkalan.
·         Fishpond
Most of the productions of fishpond are oriented for increasing oversea market demand. The locations are planned to be in the districts of Pakisjaya, Batujaya, Tirtajaya, Cibuaya, Pedes, Tempuran and Cilamaya, where these locations are oriented to cultivate air payau especially windu shrimp bandeng fish. The area for pond is about 18.273,293 ha.
·         Salt production
The length of coast is about 57 km. This natural resource is potential enough to be developed for the salt production-industry apart from fishpond. In addition, currently the home-need for salt is still imported from Australia.
·         The Industry of doll’s accessories
The regency of Karawang has more or less 100 sorts of commodities of small industry. District of Cikampek, for example, has small industrial hub of doll made of clothes like dolls of Panda, Turtle, crocodile and so on. There are about 300 unit of business with marketing areas including Jakarta, cities in java island, Sumatera, Kalimantan and other cities in Indonesia. The problems faced by this craftsmanship industry at present is lack of accessories-material like: doll’s eyes, ears, faces of doll made of rubber, while the quantity produced is big enough at least 180.000 pc/month. Given this fact, the industry of doll’s accessories provides opportunity to be developed in the Regency of Karawang.  

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