A Chinese company that produces packaging materials for garment products, Baoshen Science & Applied Technologies Co., Ltd (BSN) is expanding its business by building the first factory in Indonesia, precisely in the Kendal Industrial Estate (KIK).

The business expansion is under the name of PT BSN Technologies Indonesia (BTI) with an area of ​​about 3.2 hectares with an investment value of 10 million US dollars or around Rp 140 billion (exchange rate of Rp 14,000 per US dollar).

Director of BSN Technologies Indonesia Miao Ren Xiao said the company chose to build a factory in the area because of its strategic location and competitive minimum wage.

"We chose KIK as the location of our new factory because of its strategic location, competitive minimum wages, and the facilities offered by KIK as a Special Economic Zone such as tax incentives," he said.

According to him, compared to investing in Vietnam, companies find it easier to invest in Indonesia. This is because the Indonesian government supports the company in the process of building a factory.

Kendal Industrial Estate is the result of a collaboration between a leading city developer in Indonesia, namely PT Jababeka Tbk with a well-known developer from Singapore, namely Sembcorp. The construction of the factory will begin in August 2021 and it is estimated that PT BSN Technologies Indonesia can officially operate in June 2022.

"Later on, when it is fully operational, BSN Technologies Indonesia is expected to absorb approximately 300 workers. The presence of the PT BTI packaging factory in the Kendal Special Economic Zone can also be seen as a trend, supporting industries are now starting to follow the lead of the main industries such as garments, furniture, apparel, shoes, and others that have previously expanded to the Central Java region, "he said. .

Meanwhile, President Director of Kendal Industrial Estate Stanley Ang added that this collaboration complements the industrial ecosystem in the Kendal Industrial Estate and also promotes economic growth in Central Java.

Since its establishment in 1988, Baoshen Science & Applied Technologies Co., Ltd has been able to become a smart packaging industry by building an RFID-based Label Design and Production Technology Center. So far Baoshen Science & Applied Technologies Co., Ltd has had several factories in the Asia region, and the main factory is located in Guangzhou.

The other two factories are in North and South Vietnam. Baoshen Science & Applied Technologies Co., Ltd also has branch offices in America, Spain, Netherlands and Germany.