Yogyakarta aims to become ‘Silicon Valley’ of Indonesia

Indonesia is to transform 335 hectares of land in Bantul and 50 hectares in Kulon Progo, Yogyakarta, into “the Silicon Valley of Indonesia,” according to a regional official.

Budi Wibowo, Yogyakarta’s regional secretary for development affairs, said the two areas will host industrial estates focusing on creative industries including fashion, animation and games, The Jakarta Post reports.

“There will be no large manufacturing factories,” in the complex, he said, with businesses in the new park being small and medium enterprises.

“The two locations are prepared to become the Silicon Valley of Indonesia.”

The development of the two areas will be launched on 12 March by Joko Widodo, President of Indonesia. The President has in the past called on Yogyakarta to focus on creative and service industries, given that it is a region that does not have a lot of natural resources. More recently, the President has called for innovative efforts to attract more investments into Indonesia, including the immediate implementation of more attractive tax allowances.

This new development represents another major infrastructure project in the city of Yogyakarta, located in the centre of Java. The local government has in recent years pushed for infrastructure development in order to boost economic expansion and grow local industries, including the construction of the new Yogyakarta international airport in Kulon Progo, which is expected to commence operation by March 2019.