Officials report that China and Indonesia are deepening their partnership to advance the Batang Industropolis Special Economic Zone (SEZ) located in Central Java, alongside other manufacturing zones, through the Two Countries Parks (TCTP) mechanism, with projected funding reaching approximately Rp37.1 trillion (or about US$2.2 billion). The partnership also covers the Bintan Industrial Estate and Aviarna Industrial Estate, aiming to support Indonesia’s transition toward greener industrial development.
The collaborative framework is designed to function as a catalyst for developing sustainable eco-industrial parks. According to Edwin Manansang, acting secretary-general of the National Council for Special Economic Zones, the initiative will advance green technology transfer, clean energy adoption, industrial symbiosis, circular economic initiatives, quality investment, workforce development, and integration into international supply chains. In a statement issued on Monday, August 10, 2026, Edwin confirmed that the estimated investment value for the cooperation stands at Rp37.1 trillion.
This multi-billion-dollar framework pairs with separate reporting from Tempo, which noted an official deal signed on Thursday, March 20, 2025, between the Indonesian government and the China State Construction Engineering Corporation, with investments for land acquisition and infrastructure in the Integrated Industrial Zone Batang projected by Coordinating Minister for Economic Affairs Airlangga Hartarto to reach Rp60 trillion. Airlangga stated that the 500-hectare area designated by President Prabowo Subianto encompasses multiple sectors—including energy, automotive, finance, and telecommunications—and involves three distinct locations: Batang, Wijayakusuma in Semarang City, and Bintan.
Batang Establishes Green Infrastructure Foundations
Local authorities report that the Batang SEZ already possesses critical infrastructure to support its evolution into a sustainable manufacturing hub. Yusmanto, head of the Central Java Development Planning Agency, stated that the estate earned a Greenship Neighborhood Platinum rating during its design and planning stage. The zone has implemented solar power for its street lighting and Network Operation Center.
Additional environmental foundations at the site include an integrated wastewater treatment facility with a daily capacity of 18,000 cubic meters, approximately 18 kilometers of pipeline networks, and an integrated waste management facility capable of processing 35 tons of waste daily. Yusmanto emphasized that developing an eco-industrial park requires consistent measurement across environmental, social, economic, and estate-management indicators.
Did You Know?
The Batang SEZ infrastructure features an integrated wastewater treatment facility capable of processing 18,000 cubic meters per day alongside a waste management facility that handles 35 tons of waste daily.
Financing Standards and Community Integration
According to industry representatives, securing capital for green industrial initiatives demands strict compliance with verification and data architectures. Arief Budiman, deputy chairman of the national leadership board of the Indonesian Employers Association (APINDO) and a representative of the Indonesian Economic Scholar Association (ISEI), stated that projects need measurable standards, environmental data, and measurement, reporting, and verification systems to attract funding. Arief proposed establishing a project-preparation facility in Batang to ensure developments are technically feasible and finance-ready, noting that the area faces an evidence gap rather than a capital shortage.
Parallel community initiatives are underway to connect the industrial transformation with local populations. PT Kawasan Industri Terpadu Batang has partnered with 29 vocational high schools in Batang Regency, launching pilot educational programs with local authorities and industrial partners. Herjuno Kuncorojakti, acting head of operations services at PT Kawasan Industri Terpadu Batang, stated that eco-industrial park transformation must connect tenant needs with capacity building for workers, micro, small, and medium enterprises (MSMEs), and surrounding communities. This includes a food-truck program that has grown to seven active units, providing direct market access for local businesses.
Expert Insight:
The dual focus on international green financing standards and local workforce integration highlights the complex operational demands of transitioning large-scale industrial estates into sustainable economic hubs. By aligning foreign direct investment with regional vocational training, stakeholders aim to prevent the displacement of local economies while meeting rigorous global environmental baselines.
Frequently Asked Questions
What is the estimated investment value for the TCTP framework cooperation?
According to Edwin Manansang, the investment value under the cooperation is estimated at Rp37.1 trillion (approximately US$2.2 billion). Separate reporting from Tempo notes that broader land acquisition and infrastructure projections cited by Coordinating Minister Airlangga Hartarto reached Rp60 trillion.
Which industrial estates are covered under the partnership?
The partnership covers the Batang Industropolis Special Economic Zone in Central Java, the Bintan Industrial Estate, and the Aviarna Industrial Estate.
What environmental foundations does Batang SEZ currently possess?
According to Yusmanto, Batang SEZ holds a Greenship Neighborhood Platinum rating, utilizes solar power for street lighting and its Network Operation Center, and operates an 18,000-cubic-meter-per-day wastewater treatment facility, 18 kilometers of pipelines, and a waste management facility processing 35 tons of waste daily.
How might the integration of vocational schools and local MSMEs influence the long-term economic stability of communities surrounding the Batang industrial estate?