Why is the Karawang Industrial Estate Vital as Construction Material Industrial Park

Data released from United Nations Statistics Division in 2016 showed that Indonesia was ranked fourth from 15 countries whose manufacturing industries contributed more than 10 percent of Gross Domestic Product (GDP).

In particular, Indonesia contributed 22 percent of GDP after South Korea 29 percent, China 27 percent, and Germany 23 percent. This also indicates that manufacturing development can be relied upon to boost economic growth in the next few years.

The manufacturing industry itself is a term used for all human activities in producing goods. The production process of these goods is not only limited to the use of high technology but also handicrafts, for instance, the transportation equipment industry, basic metals, textiles and clothing, steel and ceramics, to water pipes.

Increased income in manufacturing is closely related to the purchasing power of people towards various types of products that exist so that the production process increases according to demand. Not to mention the potential possessed by Indonesia with the gift of abundant natural resources from Sabang to Merauke.

The Future of Manufacturing Industry in Indonesia

What about the future of the manufacturing industry in Indonesia? The book "Policies to Support the Development of Indonesia 's Manufacturing Sector during 2020-2024" written by the National Development Planning Agency (Bappenas) and the Asian Development Bank (ADB) shows bright potential.

The manufacturing industry has the potential to encourage economic growth in Indonesia to reach 5.68 percent in 2020-2024 or be able to reach 5.54 percent in 2024. The potential for economic growth is predicted to increase to an average of 6.31 percent in 2020-2024.

Construction Material Industrial Park in Karawang

To support the growth of the manufacturing industry, various types of Construction Material Industrial Park or industrial manufacturing areas were made. One of them is the Karawang industrial area in West Java.

There are various reasons why the Karawang industrial area, especially Karawang New Industry City (KNIC), is as construction material industrial park. What is that? Here are a few below:

1. The basic concept of KNIC is a world-class integrated industrial city so that the presence of world-class infrastructure can be seen in this region.

2. Located in a strategic location because it is close to the toll road, Jabodetabek LRT, train station, airport, and port. This strategic location also facilitates the delivery of goods everywhere.

3. Located in the main of the city between Jakarta and Bandung as the two fastest growing cities in Indonesia.

4. Industrial cities built with various clusters, such as automotive clusters, construction materials, electronics, logistics service providers, and small and medium enterprises.

5. As a Construction Material Industrial Park, KNIC provides one-stop industry support services and facilities, namely water treatment plants, wastewater treatment plants, electricity systems, sophisticated information technology, and natural gas.

That is all some information regarding the development of the manufacturing industry in Indonesia and the industrial estates that support the development of manufacturing, in this case, the KNIC in West Java.

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