The Ministry of Industry (Kemenperin) is reinforcing regulations around industrial zones to support Indonesia’s economic growth target of 8 percent by 2029.

“Strengthening industrial zones is absolutely necessary, including through comprehensive regulatory reform,” said Tri Supondy, Director General of Industrial Resilience, Regionalization, and International Access (KPAII) at Kemenperin, on Sunday (July 27) in Jakarta.

Industrial Zones Drive Significant Investment and Job Creation

Data from the National Industrial Information System (SIINas) shows that by the fourth quarter of 2024, industrial zones had absorbed Rp6,173 trillion in investment and created over 2.3 million jobs.

“This shows the significant contribution of industrial zones to the national economy and their potential to grow further by strengthening the supporting ecosystem to attract new investors,” Tri Supondy noted.

Indonesia currently has 170 industrial zones nationwide with an occupancy rate of 58.39 percent.

In the past five years, 52 new industrial zones were added, indicating strong interest from domestic and foreign investors.

Ministry Finalizes Regulations to Enhance Competitiveness

To build more competitive industrial zones, Kemenperin is finalizing derivative regulations under Government Regulation No. 20 of 2024 on Industrial Regionalization.

This includes a ministerial regulation on Industrial Zone Standards and a revision of the 2020 regulation on Detailed Environmental Management and Monitoring Plans (RKL-RPL).

“Some regulations have completed harmonization, while others are in the stage of cross-ministerial harmonization requests,” said Tri Supondy.

The ministry is also considering broader regulatory options to strengthen regulations covering institutions, facilities and ease of doing business, permits, land procurement, spatial planning, infrastructure, the roles of zone managers, community empowerment, economic waste management, and Indonesia’s National Vital Objects (OVNI).

“Strengthening regulations, including through a law governing industrial zones, is important to provide stronger legal certainty for investors and zone managers,” he added.

Industrial Zones to Transform into Sustainable, High-Tech Ecosystems

Beyond regulatory improvements, industrial zones are directed to transform into sustainable industrial ecosystems.

This includes adopting advanced technology, creating large-scale employment, integrating with vocational education, and strengthening downstream processing of natural resources.

“This effort also involves applying green industry principles, digital integration, and developing new economic growth centers across Indonesia. Thus, industrial zones will not only function as production sites but also as vital parts of national development that are resilient to change,” Tri Supondy said.

HKI Introduces F3YI Program to Boost Investment

The Indonesian Industrial Estate Association (HKI) is promoting investment through innovation.

“As a concrete contribution from HKI to increase investment, we are initiating the Free for 5 Years Investment (F3YI) program,” said HKI Chairman Akhmad Ma’ruf Maulana.

The F3YI program offers investors rent-free land for the first five years, full facilitation of permits such as building approvals and environmental permits, and easier ownership schemes after the lease period ends.

“This scheme is expected to strengthen the attractiveness of Indonesia’s industrial zones amid increasing global competition,” Maulana said.

PHOTO: FREEPIK

This article was created with AI assistance.