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INDONESIA: New Toy Cluster Mooted in Low-cost Kendal Region

A new toy-focussed industrial cluster is set to be established in the Kendal region of the country’s Central Java province. With a 10-hectare site earmarked for the project, the cluster is being jointly developed by the Indonesian Toy Association (AMI) and Kawasan Industri Kendal, the company behind the nearby Kendal Industrial Park.

The move forms part of an overall bid to relocate many of the country’s toy manufacturers from their current base in Greater Jakarta to Kendal, a relatively undeveloped region where rent / land prices are notably lower and a reduced minimum wage level applies.

According to the developers, while typical land prices in the Greater Jakarta region range between Rupiah 2 million (US$147) and Rupiah 5 million per square metre, industrial land in Kendal is available from just Rupiah 1.6 million per square metre. Similarly, the minimum monthly wage in Kendal is Rupiah 1.7 million compared to the Rupiah 3 million payable in the Greater Jakarta region.

Content provided by Picture: HKTDC Research
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