Hoi Fu breaks ground on Rp1.12tn factory in Kendal SEZ
Monday, May 4 2026 - 11:35 AM WIB
By Romel S. Gurky
The government marked continued progress in investment realization with the groundbreaking of a new paper packaging factory by PT Hoi Fu Paper Packaging in the Kendal Special Economic Zone (SEZ), Central Java, on May 2, a project expected to generate significant employment and support regional growth.
The factory represents an investment of around Rp1.12 trillion and is projected to employ up to 1,000 workers, with about 95% of the workforce sourced locally. Hiring will be carried out in three phases, comprising 300, 500 and 200 workers, while the project is also expected to create indirect jobs in sectors such as logistics and micro, small and medium enterprises.
Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, said the government is stepping up efforts to accelerate investment realization as part of broader measures to strengthen economic growth amid global uncertainties.
He added that President Prabowo Subianto has instructed authorities to not only facilitate but also actively monitor investment projects, ensuring that constraints—from strategic issues to raw material supply—can be addressed quickly through stronger coordination.
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Kendal Regent Dyah Kartika Permanasari said the regency is well positioned as an economic buffer zone, with the SEZ continuing to attract investment that supports local economic expansion and job creation.
The Kendal SEZ has recorded cumulative investment of Rp101.93 trillion as of the first quarter of 2026, employing 117,941 people. The zone has contributed to Kendal Regency’s economic growth of 9.0% year-on-year and accounts for about 24.33% of the region’s gross regional domestic product.
Efficiency indicators also remain strong, with an incremental capital output ratio (ICOR) of 3.92, reflecting the ability of incoming investment to generate economic output. This has helped position Kendal as one of the top-performing regions in Central Java in terms of investment realization.
Susiwijono, who also chairs the implementation team of the National Council for Special Economic Zones, said the government is preparing a 1,000-hectare expansion of the Kendal SEZ as land utilization is nearing full capacity. He emphasized the importance of coordination between central and regional authorities to ensure the expansion delivers broader economic benefits.
The government also pledged to continue offering incentives to attract new investors, as it seeks to sustain momentum in industrial development and job creation.
Editing by Reiner Simanjuntak