Measuring the Attractiveness of Karawang Whoosh Station as an Investment Magnet
Tuesday (24/12/2024) was the first day of operation of Karawang Station which serves passengers on the Whoosh high-speed train operated by PT Kereta Cepat Indonesia China or KCIC. Of the 48 Whoosh train schedules operating during Christmas 2024 and New Year 2025, there are 20 Whoosh trips that stop at Karawang Station.
The high-speed train route from Halim Station to Karawang Station located in Wanakerta Village, Telukjambe Barat District, Karawang Regency, West Java, and vice versa, takes 15 minutes. Meanwhile, the route from Padalarang Station in West Bandung Regency to Karawang Station takes 20 minutes.
The time for passengers to get on and off at Whoosh Karawang Station is only 2 minutes. In total, the Whoosh trip that serves passengers getting on and off at Karawang Station will experience an additional seven minutes of travel time.
When attending the inauguration of Karawang Station, Tuesday, Chinese Ambassador to Indonesia Wang Lutong said that the operation of this station shortens the distance between Jakarta and the Karawang industrial center area, West Java. This condition can increase the attractiveness of Karawang as an investment magnet in the eyes of international investors.
Lutong said that Karawang is home to the manufacturing industry, especially the automotive, electronics, and household appliances industries. He added that currently there are at least 50 international companies in the industrial center which is 10 kilometers from Karawang Station.
"Going to Jakarta from this area (Karawang) now only takes 15 minutes. Karawang Station presents a new landscape for connectivity between the industrial area, Jakarta, the International Port (Tanjung Priok), and the International Airport (Soekarno-Hatta). In substance, this reduces operational costs so that it will be attractive in the eyes of investors," he said.
Talking about investment in Karawang, capital owned by foreign investors has so far dominated the flow of direct investment entering the district with the second largest gross regional domestic product (GRDP) in West Java.
Based on data from the Investment and Integrated One-Stop Service Office of Karawang Regency, West Java, investment realization in Karawang until the third quarter of 2024 reached IDR 48.6 trillion. This figure has also exceeded the target set by the Investment Coordinating Board (BKPM) for 2024 of IDR 42.7 trillion.
Foreign investment (PMA) dominates the total investment realization, which is IDR 42.05 trillion. The remaining IDR 6.55 trillion comes from domestic investment (PMDN).
AllureInfrastructure and urban planning observer from Trisakti University, Yayat Supriatna, said that several years ago he conducted research on the interrelationship of industrial areas in Java and outside Java. The results showed that most industrial areas outside Java only produce semi-finished products.
The majority of these semi-finished products are sent to Java, one of which is to the Karawang industrial area. The existence of industry increases the potential for regional growth. "The existence of industrial areas is believed to encourage the growth of Karawang and its surrounding areas," he said.
Without the presence of the Karawang KCIC Station, the allure of Karawang Regency as an investment center is already very large. This is considering that Karawang is flanked by three growth centers, namely Jabodetabek, Greater Bandung, and Greater Cirebon, with reliable connectivity in the form of the Trans-Java Toll Road.
Karawang is also supported by Tanjung Priok Port in North Jakarta and Patimban Port in Subang. To support transportation hubs in this area, the Jakarta-Cikampek toll road has been developed with the widening of the lanes from West Karawang to East Karawang.
"Karawang is like just turning a blind eye, the money comes by itself. When compared to the IKN (national capital), we need an investment of IDR 400 trillion. If the need is IDR 10 trillion per year, that means we need 40 years. Meanwhile, Karawang can approach IDR 29 trillion in one year. This is a big market power," explained Yayat.
So cosmeticsThe presence of Karawang Station which is crossed by the Whoosh train is considered only as additional cosmetics to attract investors which can shorten the travel time for individuals from Karawang to Jakarta which is currently still the center of the Indonesian government.
The ticket price for the Whoosh train on the Halim-Karawang route and vice versa is IDR 125,000, while for the Karawang-Padalarang/Tegalluar-Summarecon route and vice versa it is priced at IDR 175,000 for premium economy class. As for the business class and first class fares, they are at IDR 450,000 and IDR 600,000.
For executive level officials (c-level) in international companies operating in Karawang, the ticket price is certainly very affordable. This is considering that the travel time to Jakarta from Karawang can be shortened to only 15 minutes.
Currently, the travel time to KCIC Karawang Station from the economic center of this region in Karawang International Industrial City is around 30 minutes using a four-wheeled vehicle.
To access KCIC Karawang Station, passengers using private vehicles from the West Karawang Toll Gate can go via Jalan Badami then enter Jalan Pasar Jati and Jalan Raya Pangkalan. KCIC Karawang Station is connected to the toll road via the West Karawang Toll Gate Kilometer 47 Jakarta-Cikampek.
Supporting infrastructureCoordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono when inaugurating the operation of Karawang Station ensured that the government will provide full support to improve connectivity between KCIC Karawang Station and the industrial area in Karawang.
The commitment is intended to maximize the economic impact of the station's existence. "The existence of KCIC Karawang Station can increase economic value, community welfare, and expand economic investment not only for Karawang, but also nationally," he said.
President Director of PT KCIC Dwiyana Slamet Riyadi said that gradually, the number of train departures will be increased to 62 departures in February 2025. The increase in the number of train departures will be carried out in line with improvements in access and supporting infrastructure connecting the station with the industrial activity center in Karawang.
According to Dwiyana, the increase in passengers will be supported by connectivity services, one of which is a free shuttle bus for Whoosh fast train passengers, which connects KCIC Karawang Station with the Summarecon Villagio Outlet shopping center to facilitate passenger mobility.
"With complete access improvements, KCIC Karawang Station is targeted to be able to transport 14,000 passengers per day. It is targeted that various infrastructure and supporting facilities for the station to facilitate passenger access can be completed in July 2025," he said.
(SOURCE)