Indonesia’s Ministry of Industry supports designating several industrial estates as National Strategic Projects (PSN) to accelerate downstream processing, strengthen the national industrial structure, and distribute investment more evenly across the country (10/10).

Industry Minister Muhammad Sarmuji said the ministry would coordinate with relevant stakeholders to discuss the proposal and determine follow-up measures.

The proposal is intended to accelerate integrated industrial estate development and strengthen the national industrial ecosystem.

Industry Ministry Supports Industrial Estates in the 2027 Government Work Plan

The Ministry of Industry supports the inclusion of several industrial estates as National Strategic Projects in the 2027 Government Work Plan (RKP). The initiative aims to accelerate industrial estate development, support downstream processing, and strengthen the national industrial ecosystem.

“Industrial estate development needs to be pursued as a National Strategic Project so that downstreaming and industrial development can proceed more optimally. To this end, we will coordinate with relevant stakeholders to discuss the proposal and its follow-up measures,” Sarmuji said in a statement in Jakarta on Saturday (10/10).

Sarmuji said industrial estate development could help distribute industrial activity more evenly and create new economic centers. These developments are expected to generate quality employment opportunities and increase economic value for regional economies.

Indonesia Has 181 Operational Industrial Estates

As of the third quarter of 2026, Indonesia had 181 operational industrial estates across several regions, accommodating more than 12,000 tenants or industrial companies. Cumulative investment in these estates had reached approximately Rp6,700 trillion, with around 2.3 million workers employed.

The Ministry of Industry aims to accelerate industrial estate development through the National Strategic Projects framework. The initiative is intended to support downstream processing, attract investment, expand employment opportunities, and distribute industrial activities more evenly across Indonesia.

National Strategic Project Proposals Require Cross-Ministry Coordination

Tri Supondy, Director General of Industrial Resilience, Zoning and International Industrial Access (KPAII), said designating industrial estates as National Strategic Projects was expected to strengthen government support for areas with strategic roles in the national industrial structure.

“Industrial estate development needs to be directed toward building an integrated industrial ecosystem. Through the proposal to designate these areas as National Strategic Projects, we hope to accelerate industrial estate development, further support downstreaming, attract investment, and expand the distribution of industrial activities across Indonesia,” Tri said.

Tri added that the proposal process would require discussions among ministries and government institutions to establish project priorities and determine follow-up measures. This coordination is intended to ensure that the proposed industrial estates support national industrial development needs and deliver broader economic benefits.

Proposed Industrial Estate Law Seeks to Strengthen Regulation

In addition to accelerating industrial estate development through National Strategic Projects, the Ministry of Industry is discussing a proposed Industrial Estate Bill to strengthen the regulatory framework.

The bill is an initiative of the House of Representatives (DPR) and has been included in the 2026 National Legislation Program (Prolegnas). The proposed regulation is expected to provide legal certainty and strengthen industrial estate governance to improve competitiveness, support investment, and promote a more even distribution of industrial development across Indonesia.

The bill is also expected to address challenges in industrial estate management, including licensing, land and spatial planning, infrastructure provision, security, and environmental management.

The Ministry of Industry considers industrial estate development an important instrument for strengthening national industrial competitiveness. The ministry is pursuing faster industrial estate development, stronger regulations, and coordination among government institutions to support an integrated industrial ecosystem, attract investment, expand employment opportunities, increase economic value, and distribute industrial development more evenly throughout Indonesia.

PHOTO: HUMAS WIJAYA KARYA/KOMPAS.COM

This article was created with AI assistance.

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