Jababeka: We Aim to Create Value for Indonesia

SD DARMONOSD Darmono, Founder and Chief Executive Officer of PT. Jababeka, Tbk, said that the ultimate goal of his company is to transform Indonesian society to be a modern industrialized nation. As he said earlier this morning to Yudo Anggoro, faculty of SBM ITB (30/1/2014) in Jakarta. Industrialization is the crucial key for Indonesia to bring value added to the society, as well as to put Indonesia in a well-respected position in the current competitive global market.

SD DARMONOSD Darmono, Founder and Chief Executive Officer of PT. Jababeka, Tbk, said that the ultimate goal of his company is to transform Indonesian society to be a modern industrialized nation. As he said earlier this morning to Yudo Anggoro, faculty of SBM ITB (30/1/2014) in Jakarta. Industrialization is the crucial key for Indonesia to bring value added to the society, as well as to put Indonesia in a well-respected position in the current competitive global market.

Established in 1989, PT Jababeka, Tbk spearheaded the development of industrial estates in Indonesia. “At that time we were frustrated with the condition of industrial investment in Indonesia,” Darmono recalled, “Foreign investors were afraid to invest due to high uncertainty, we did not have any single industrial complex, sufficient infrastructures, not electricity.” Darmono perceived this unfavorable condition as an opportunity. “I said to government, let us build the industrial complex, and investment will come. The demand was there, and I was right. We built the first industrial complex, and foreign investors were flocking to our complex. First was United Tractor, second was Unilever. Now we have more than 2.000 industries in our industrial district in Cikarang alone. We create jobs for people, everybody is happy,” Darmono smiled.

Darmono planned to expand his industrial estates throughout Indonesia. “Now we have Cikarang Dry Port. We also have other industrial districts in Cilegon, Kendal, and Morotai. Industrialization generates values more than what agriculture society may offer,” as he explained. He argued that one ha of land can only provide job for one person in agriculture society. “But the same size of land can create job for one hundred, even one thousand people in industrialization,” he added.

Darmono also believed that human capital is a critical element for Indonesia to be competitive. “That is why collaboration with educational institutions such as SBM ITB is crucial to supply our best talents to the industries. In the future, we should provide as many qualified and skilled people as possible to be able to compete with other industrialized nations,” he said.

When he was asked about government’s plan to create more industrial estates as stated in the Masterplan for Accelerating and Expansion of Indonesia Economic Development (MP3EI), he replied smilingly, “It is a nice dream.”

*This interview was performed for the purpose of Yudo Anggoro’s dissertation project at the University of North Carolina, Charlotte, US.Established in 1989, PT Jababeka, Tbk spearheaded the development of industrial estates in Indonesia. “At that time we were frustrated with the condition of industrial investment in Indonesia,” Darmono recalled, “Foreign investors were afraid to invest due to high uncertainty, we did not have any single industrial complex, sufficient infrastructures, not electricity.” Darmono perceived this unfavorable condition as an opportunity. “I said to government, let us build the industrial complex, and investment will come. The demand was there, and I was right. We built the first industrial complex, and foreign investors were flocking to our complex. First was United Tractor, second was Unilever. Now we have more than 2.000 industries in our industrial district in Cikarang alone. We create jobs for people, everybody is happy,” Darmono smiled.

Darmono planned to expand his industrial estates throughout Indonesia. “Now we have Cikarang Dry Port. We also have other industrial districts in Cilegon, Kendal, and Morotai. Industrialization generates values more than what agriculture society may offer,” as he explained. He argued that one ha of land can only provide job for one person in agriculture society. “But the same size of land can create job for one hundred, even one thousand people in industrialization,” he added.

Darmono also believed that human capital is a critical element for Indonesia to be competitive. “That is why collaboration with educational institutions such as SBM ITB is crucial to supply our best talents to the industries. In the future, we should provide as many qualified and skilled people as possible to be able to compete with other industrialized nations,” he said.

When he was asked about government’s plan to create more industrial estates as stated in the Masterplan for Accelerating and Expansion of Indonesia Economic Development (MP3EI), he replied smilingly, “It is a nice dream.”

*This interview was performed for the purpose of Yudo Anggoro’s dissertation project at the University of North Carolina, Charlotte, US.