Tuesday, 22 September 2026
Indonesia has been looking for more opportunities to attract international investment, especially in the manufacturing and industrial sectors. One of the countries that has received attention is Germany, with Indonesia proposing the development of a special German industrial area in Batang, Central Java.
Why Batang?
Batang is located in Central Java and has been developed as an industrial area that can accommodate international investors. At the time of the proposal, the Indonesian government was developing KIT Batang as a location for foreign companies looking to establish or relocate production facilities.
For Indonesia, attracting German companies to Batang could support the development of a stronger industrial ecosystem. The idea was not simply about building factories, but also about creating a production base and supply chain that could connect German industries with wider global markets.
Building a German Industrial Quarter
During the meeting, Jokowi offered Germany the opportunity to develop a dedicated industrial area inside KIT Batang. The proposal was connected to Indonesia’s plan to increase German industrial investment and create a production and global supply-chain base in the country.
The proposal also included cooperation in human resource development. Indonesia invited Germany to support vocational education, which could help prepare workers with skills needed by modern industries.
This combination is important because industrial investment is not only about land, buildings, and machines. Companies also need workers who understand technology, production systems, quality control, and other industrial skills.
Part of a Wider Indonesia-Germany Partnership
Indonesia and Germany have maintained a comprehensive partnership since 2012. According to Indonesia’s State Secretariat, Germany was considered an important European partner for Indonesia, including in trade and investment.
The Batang proposal therefore came as part of a wider relationship between the two countries.
The two sides also discussed environmental issues and the importance of reducing emissions. Indonesia highlighted its commitment to green development, including sustainable energy and environmental programs.
A Potential Industrial Hub
The idea of a German Industrial Quarter in Batang was still a proposal rather than a completed German investment project. Indonesian government report said that discussions and coordination were continuing, while several possible locations were being considered, including Batang, Gresik, and Kendal.
Even so, the proposal showed how Indonesia was trying to position Batang as a destination for international manufacturing.
For Batang, the arrival of more international companies could bring new industrial activities, supply-chain opportunities, technology transfer, and employment. For German businesses, Indonesia could provide access to a large market and a strategic location in Southeast Asia.
The proposal also reflected a bigger goal: connecting Indonesia more closely with international manufacturing networks while developing local skills and industrial infrastructure.
For now, the German Industrial Quarter remains part of the investment story surrounding KIT Batang, showing the Indonesian government’s efforts to attract German industry and deepen economic cooperation between the two countries.