On 26 July, President Joko Widodo launched the first export of 16,000 pairs of Hoka brand shoes to the United States, produced by PT Yih Quan Footwear Indonesia, a Taiwanese company investing IDR 1.7 trillion in Indonesia. This event coincided with the inauguration of the Batang Integrated Industrial Park (KIT) in Central Java. Yih Quan Footwear, part of Yih Group, previously invested in Vietnam and has now established its first labor-intensive project in Indonesia, expected to employ around 13,000 workers. President Widodo emphasized the significance of this development, highlighting that the Batang Industrial Park currently houses nearly 20 companies, including notable names like LG Energy Solution from South Korea and KCC Glass. These companies have already invested IDR 14 trillion in the park. To attract more investors and create additional jobs, an extra 400 hectares will be made available.
In addition to the shoe export and industrial park launch, the President announced tax incentives for companies investing in Batang, particularly for importing machinery. Notably, LG Energy Solution is set to begin producing cathodes, essential components for electric vehicle batteries, in September. The company plans to establish a factory in Batang with an investment of USD 2.4 billion, which will produce 220,000 tons of precursors and 42,000 tons of cathodes annually. This facility will supply key materials for a planned battery cell factory in Karawang, West Java, valued at USD 3.6 billion. The initiatives are part of Indonesia's broader strategy to diversify its industrial base, enhance economic value, and provide employment opportunities.
