Government Is Demanded to Fix Industrial Estate Regulations


The urge to accelerate the industrial estate development is still be conveyed by the Industrial Estate Association (HKI). They demanded that the government should immediately issue a new regulation that specifically regulates the industrial infrastructure provision.

President Director of Krakatau Sarana Properti (KSP) Ridi Djajakusuma explained that there are still many problems with industrial estates in the area, such as inadequate infrastructure. Whereas, industrial estates provide a fairly large contribution to gross domestic product (GDP) each year.

“Not to mention licensing issues which sometimes hinder the development of industrial estates in the region. KSP will of course also continue to improve its performance and services, especially in dealing with the Cilegon industrial area,” Ridi said in his official statement, Monday (6/6/2022).

Ridi also explained that the number of Industrial Estates (KI) is spread over 21 provinces and absorbs more than 5 million workers in the manufacturing and non-manufacturing sectors. The existence of industrial estates has also created various non-manufacturing commercial businesses that are very diverse as well as quite high social activities for the surrounding community.

He said the existence of the Regional Industrial Estate had contributed quite a lot of foreign exchange. This can be seen from the contribution of the manufacturing industry on average annually around 20 percent to 23 percent of GDP.

“KSP hopes that the government will give serious attention to the development of industrial estates in the regions. Industrial estates can be a lever for regional economic development, expand job opportunities and also increase export competitiveness, and be able to attract investment both from domestic and abroad,” he said.

General Chairperson of the Indonesian Industrial Estates Association (HKI) Sanny Iskandar said there needed to be directions from the government as a reference for the development of thematic industrial areas and industrial estates 4.0 as a fourth-generation industrial area.

Sanny added that industrial estates must also be competitive to attract investment. IPR has provided several recommendations, namely the planning of industrial estates in the regions to be selective in their development taking into account the economic potential and carrying capacity of the location, the existence of special regulations for licensing matters for IP, and Industry within IP.

In addition, the existence of special regulations in the field of taxation for activities and industries in industrial areas as well as the quality of education and work skills of human resources in areas where industrial areas are located must be improved to face technological advances through vocational education (Vocational School).

“Not only guidelines or directions, but IPR also requires digital infrastructure support to be able to develop industrial areas 4.0. For this reason, HKI will form a team to develop a digital and thematic industrial area concept,” he said.