JakartaGlobe-Aug 6
East Java’s Madura industrial estate has just landed a deal that will see the hub hosting relocations of some Chinese factories.
The partnership links two hubs: Wiraraja Madura Internasional and China’s Guangdong (Fenyong) ASEAN Industrial Park. Wiraraja has also teamed up with the Zhanjiang Industrial Transfer Cooperation Park Management Committee. According to Wiraraja Indonesia president director Akhmad Ma’ruf Maulana, a “cluster of Chinese firms” will move their production to Madura, citing that these factories are “no longer permitted to operate” in their original sites. Ma’ruf did not give a number when asked about the price tag of the upcoming investments. “We are still listing the [Chinese] companies that will move there. But we can confirm that there are polyester, chocolate, and mattress manufacturers in the bunch,” Ma’ruf said in Jakarta on Wednesday evening. He also described the investments as “labor-intensive”, referring to the possible job creation opportunities that may arise. The Madura estate is also now speeding up the permit paperwork. “We have taken care of the land clearing. … If we can clinch the permits in 2026, we will speed up all the work within this year because the investment is already there,” Ma’ruf said. Senior economic minister Airlangga Hartarto said that the fresh investments were part of the so-called “Two Countries, Twin Parks” bilateral framework, which links industrial estates of both countries.
“This is bound to be the first industrial estate in Madura,” Airlangga told reporters earlier that day, while adding that the partnership can easily take off thanks to the “close bilateral ties”.
Foreign investments from China totaled $3.9 billion in the first half of 2026, and around $7.6 billion had come from Hong Kong, according to government data. Eight Zhanjiang-based companies have invested in 12 Indonesian projects so far, putting around $370 million. Six Indonesian companies have made their presence in the Chinese coastal city. Read more at:
