The Kendal Special Economic Zone

The Kendal Special Economic Zone (SEZ), one of Indonesia's fastest-growing industrial zones, is drawing more and more foreign investors to make investments in a number of key industries. Most recently, on Sunday, April 27, 2025, PT HSG Material Indonesia hosted a groundbreaking ceremony to formally start building its new facility, signaling the growth of the building materials industrial sector in the area.

In order to satisfy industry demand in both local and international markets, the facility will concentrate on producing construction materials such precast concrete, prefabricated pipe piles, and prefabricated square piles. The business is a division of Fujian Hongsheng Material Technology Co., Ltd., a Chinese enterprise renowned for being a trailblazer in the creation of superior foundational construction materials.

The facility is planned to have a sales capacity of 3 million units of recast concrete piles annually as well as 150 thousand square meters of ready-mixed concrete annually, with a construction completion deadline of the first quarter of 2026. PT HSG Material Indonesia anticipates hiring about 250 workers in the first phase. Furthermore, the business will oversee import and export operations, handling an approximate daily freight volume of 3,000 to 5,000 tons.

Juliani Kusumaningrum, Executive Director of Kendal Industrial Estate (KIK), thanked PT HSG Material Indonesia for their dedication in selecting Kendal SEZ as their investment site at the occasion last Sunday. Being a member of PT HSG Material Indonesia's strategic expansion makes us extremely proud. In addition to bolstering the industrial ecosystem in Kendal SEZ, this new investment promotes the development of domestic industrial added value, boosts export activity, and creates jobs, all of which contribute to the growth of the local economy. We are totally dedicated to helping HSG run smoothly and successfully in the future," she stated.

He Bao Ping, chairman of the Fujian Hongsheng Group, also underlined that the plant's development is a component of the company's long-term ambition to increase its worldwide presence. Given that it is now experiencing fast development and that infrastructure development is well advanced, we can see that Indonesia has enormous economic potential. In particular, Central Java serves as a crucial link between Southeast Asia and the international market. We are certain that we can positively impact Indonesia's economic growth with HSG's superior products," he stated.

Wang Yuzhong, the chairman of Semarang's Fuqing Chamber of Commerce, similarly voiced his support. "We hope that Indonesia HSG can use Kendal Industrial Park as a springboard to combine cutting-edge Chinese technology and environmentally friendly ideas with indigenous requirements in Indonesia." We are certain that HSG will become a model of capacity collaboration between China and Indonesia, construct a first-rate green building materials manufacturing base in Southeast Asia, and extend its supply chain network throughout the ASEAN area."

Mei Wenjun, Deputy General Manager of the Overseas Business Department of the General Contractor Company of China Construction Third Engineering Bureau (CSCEC Third Bureau), and Cahyo Prastiadi, Head of Supervision and Control of the Kendal Special Economic Zone (KEK) Management Committee, were among the distinguished guests who attended the ceremony. These stakeholders' presence enhances the institutions' ability to work together to promote the growth of the industrial sector and long-term investment in Kendal SEZ.

PT HSG Material Indonesia held a groundbreaking ceremony at Kendal Industrial Park on April 27, 2025. The factory will focus on the production of construction materials such as prefabricated pipe piles, prefabricated square piles and precast concrete for industry.

PT HSG is a subsidiary of a Chinese company, Fujiang Hongsheng Material Technology Co Ltd, which focuses on the research and development of basic building materials and is a pioneer in the industry of high quality building material products.

Construction is expected to be completed in the first quarter of 2026 and will be operational immediately. With a selling capacity of 3,000,000 meters of prefabricated concrete piles per year and 150,000 m2 of ready-mixed concrete per year. The employment of PT HSG is estimated around 250 workers.

"We are looking that Indonesia has great economic potential as it is in a period of rapid development and infrastructure is in high demand. In particular, Central Java is an important symbol to connecting Southeast Asia and the global market. We are confident that HSG's high quality products will lead to great economic development," said Mr. He Bao Ping, Chairman of HSG Fujian Hongsheng Group.

Juliani Kusumaningrum as Executive Director of KIP said that after the first meeting with Hongsheng in September 2024, it came to a good result because Hongsheng decided to invest in KIP. The presence of PT HSG is expected to have a positive impact on the local economy, create jobs, and stimulate economic growth in Kendal.

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