Karawang New Industry City is a Suitable Location for Establishing an Automotive Factory

The development of the automotive industry in Indonesia continues to increase every year. The automotive sector in 2019 will continue to be more positive. The development of the automotive industry is supported by public demand for the automotive industry which increases every year. Moreover, with the infrastructure development from West to East Indonesia, it is estimated that it will affect the growth of car sales in Indonesia.

According to the Ministry of Industry, "Indonesia already has a strong point in the automotive structure, Indonesia has been able to produce automotive industry materials such as steel, chemicals, glass, and tires. Moreover, Indonesia has been able to provide adequate labor for this industry. " The increase in the automotive industry in 2019 is very positive.

Furthermore, according to the data from the Association of Indonesian Automotive Industries (GAIKINDO), "The export of intact or complete built-up cars in Indonesia is increase throughout 2018 by 14.44 percent or by 264,553 compared to last year." Automotive industry in Indonesia is also supported by the existence of industrial zone across the country to help the automotive factories work well.

One of the favorite industrial estates to build or to run automotive factories is the Karawang industrial area. Karawang industrial estate has been prepared by the government to become an automotive factory area to compete with the world automotive market.

Karawang industrial area was chosen as the center of the automotive industry because it has many advantages such as easy access, the distance is close to Jakarta factories and has cheaper transportation costs. There are several automotive factories in the Karawang area such as Toyota Astra, Astra Honda, Astra Daihatsu, Isuzu, and several other factories.

These factories produce cars, motorcycles and some spare parts for the local automotive industry needs as well as international automotive industry needs. Several countries that become the export destinations for the local automotive industry are the Philippines, Vietnam, Cambodia, and several countries in Latin America like Peru.

It seems that the number of exports in CBU four-wheeled vehicles is predicted continue to increase due to the policy support of the Director General of Customs and Excise Regulation No. 01 of 2019 concerning CBU Motorized Vehicle Export Management in effect from 1 February 2019. The policy confirms that the Export Declaration (PEB) can be submitted after exported goods enter the Customs area.

Exported good does not need an Export Service Note (NPE) to enter the Customs Zone and correction of the number and type of goods must be carried out no later than three days from the date of departure of the carrier.

There are many industrial estates that are suitable for building automotive factories in the Karawang area, one of them is Karawang New Industry City. If you want to build an automotive factory, it's a good idea to look for it in a strategic industrial estate because it's close to transportation routes.

If you want to build automotive factories, you should look for it in a strategic industrial estate because it is close to transportation routes.

One of the industrial estates that have a strategic location is Karawang New Industry City (KNIC). Located close to the capital city of Jakarta and has plenty of transportation access, make KNIC a suitable area for building automotive factories and run a manufacturing company.

In addition, KNIC has 6 national infrastructure access such as the Jakarta-Cikampek toll road, Jabodetabek LRT, Trans Java lines, Jakarta-Bandung Railway, Kertajati International Airport, and Patimban port. KNIC is also supported by facilities such as premium electricity, natural gas, and fast internet connections to support the performance of manufacturing companies.


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