(As per PP No.71 / 2021)

JAKARTA, 2 Juli 2021 - Java Integrated Industrial & Ports Estate, or JIIPE, was founded by PT AKR Corporindo Tbk through its subsidiary PT Usaha Era Pratama Nusantara (AKR) and PT Pelindo Ill through its subsidiary PT Berlian Jasa Terminal Indonesia in order to accelerate job creation and economic development in Indonesia, particularly East Java. JIIPE has been officially designated as Gresik Special Economic Zone (SEZ) through the Government Regulation (PP) of the Republic of Indonesia.

JIIPE's designation as a Gresik SEZ makes it one of the most competitive and alluring industrial estates for both domestic and foreign industry participants. Gresik SEZ (JIIPE) is a national strategic project that is prepared to accept investors from Industry 4.0. Gresik SEZ offers superior connectivity via multimodal transportation, direct connections to deep seaport, comprehensive utility facilities, one-stop licensing services, centralized AMDAL administration at the area manager's office, and expedited construction permits via the KLIK facility.

With the administrator office in Gresik SEZ, the synergy of licensing services and interconnection between agencies will be very simple and quick, ensuring ease of doing business and the existence of government facilities and incentives for investors, including tax and fiscal incentives as stipulated in the Regulation of the Minister of Finance of the Republic of Indonesia.

The combination of JIIPE facilities, strategic location, and SEZ status will promote economic growth via export-oriented foreign direct investment activities and import substitution.

Bambang Soetiono, President Director of PT Berkah Kawasan Manyar Sejahtera as the manager of JIIPE Special Economic Zone (SEZ) Gresik, expressed his gratitude to the Government of the Republic of Indonesia, East Java Province, and Gresik Regency for their support in establishing JIIPE as Gresik SEZ.

Bambang Soetiono stated in his statement, "With the establishment of JIIPE as KEK Gresik, we are certain to be more competitive in facilitating industries that will invest in East Java, thereby contributing to the Indonesian state by accelerating economic recovery and employment creation. For Gresik SEZ (JIIPE) to become one of the most attractive investment destinations for domestic and international investors, we are committed to developing various innovations and collaborating with the government to provide a variety of business facilities, reduce logistics costs, and develop high-value integrated areas for industry players. KEK Gresik (JIIPE) contributes to the development of industrial estate 4.0 by providing utilities such as electricity facilities, clean water and waste management, gas supply, telecommunications networks, and multimodal transportation.

Industry 4.0 places an emphasis on the integration of information technology and industry. JIIPE is a significant investment destination in East Java and provides solutions for enhancing Indonesia's industrial competitiveness. A 2,167-hectare environmentally favourable industrial area is organized by industry type.

Currently, Gresik SEZ (JIIPE) has fifteen tenants from diverse industries. Cluster development in Gresik SEZ is:

• 1. Metal Industry Concentration
• 2. Cluster of Electronic Industry
• 3. Chemical Industry Concentration
• 4. Energy Industry Concentration
• 5. Industry Cluster for Support and Logistics

Approximately 400 ha of the 2,167 ha of Gresik SEZ (JIIPE) is a deep seaport strategically located in the Madura Strait and part of the Surabaya West Water Current (APBS). With a total ultimate pier length of 6,500 meters and a water depth of -16 meters LWS, KEK Gresik Port (JIIPE) can accommodate vessels of up to 100,000 deadweight tons.

This port has been operational since 2015; at present, JIIPE Port has served up to 2 million tons of cargo, and after the jetty extension in June 2021, it is expected to be able to manage up to 6 million tons of cargo.

JIIPE is designed as a green project with comprehensive utility facilities and negligible runoff. This facility is also a source of recurring revenue for JIIPE, as it meets the industry's requirements for production efficiency. The strategic location of JIIPE, which is connected to the sea route, Tol Krian Legundi Sunder Manyar Road, and the Railway, facilitates the export and import of goods in East Java.