Government Accelerates Industrial Estates Development


The Ministry of Industry continues to accelerate industrial estates' development in several regions to attract potential global investors, particularly those who wish to relocate their production base to Indonesia.

Director-General of Resilience, Territory, and International Industrial Access of the Ministry of Industry, Eko S.A. Cahyanto, said that the government is always active in synergizing with stakeholders, including with industrial estate managers, business actors, and local governments, to resolve obstacles to industrial estate development.

"We will disseminate government programs and policies to stakeholders, especially those related to the ease of investment in the country. The government is determined to further create a conducive investment climate, even in the midst of the pressure from the impact of the COVID-19 pandemic," he said in Jakarta on Friday (29/1).

According to Eko, the Ministry of Industry will collaborate to promote industrial estates, develop pilot projects for certain industrial areas such as halal industrial areas, and encourage the provision of infrastructure support for industrial estate needs such as roads, ports, and gas prices.

"The government is optimistic that Indonesia is still the target of global investors to invest in expansion or relocation. This is reflected in the realization of the investment value of the manufacturing sector amounting to IDR 272.9 trillion in 2020, which is up 26 percent compared to 2019," he explained.

The increase in the number and area of ​​industrial estates has been seen in the last five years. In terms of numbers, there was an increase of 47.5 percent. Meanwhile, it has increased by 15,662.02 hectares (Ha) or by 43.26 percent in terms of area.

Outside Java, the number of industrial estates jumped by 14 areas, with an additional land area of ​​8,664.36 hectares in 2020. Outside Java, land availability is still relatively wide, so the increase in the percentage of industrial areas outside Java is higher than Java.



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