Thursday, 11 October 2012


General Chairman of Industrial Zone Association (HKI), Sanny Iskandar, in Jakarta on Monday (8/13/2012) proposed the government through the Industry Ministry for immediate construction of road infrastructure from Cibitung-Cikarang industrial zone to the port in Cilincing and asked for Indonesian Police’s support for securing Industrial Zone. Sanny emphasized on the importance if the government builds transportation infrastructure, one of them is proposal for construction of railway tracks to serve Jakarta-Surabaya route which will boost investment entrance to industrial zone.

He considered that so far transportation has become a problem in logistic and distribution systems. In addition to construction of railway tracks, he also expected that there will be construction of access road to the port and toll road as soon as possible. It is also expected that there will be a parallel road access to the south, from Karawang we can go directly to Bogor (West Java). HKI also re-emphasized the immediate construction of Cimalaya port (Karawang). The aim, according to him, is so that business operators can accommodate supply from Karawang and not only rely on Tanjung Priok port, Jakarta. Transportation infrastructure is very important and we demanded the government the government to improve it”, Sanny said.

In addition to transportation infrastructure, the one which hampers development of industrial zone in Indonesia is land problem. According to him, the industrial zone management admitted that there was a flood of demand from foreign investors interested in opening new factories in line with improvement of industrial land by investors reaches 300 hectares. The demand grows by around 10% - 20% each year.

He added that in the past few years, demand for land only reaches 30 hectares per year, but now it reaches 300 hectares per year. Demand for new factories come from investors from Japan, South Korea, Malaysia, Singapore, and other countries. Commonly, the sectors which are liked by investors are automotive and spare parts, pharmaceuticals, textiles, electronics, steel processing, and food and beverages.

Therefore, he expected the central and regional government to accelerate license on land use for industrial zone. Demand from investors to expand land in industrial zone increases. He expected the government to review regulation of the National Land Agency (BPN) concerning limitation of industrial zone area to a maximum of 400 hectares to him, a large size of area is needed in an industrial zone so that it could absorb a large number of workers. He reported that currently, HKI which has 60 industrial zone management as members have obtained license on 27,000 hectare area spreading over 26 regencies/cities. From the total size of area, 11,100 hectares has been cultivated and 74,000 nabufacruring companies have been built on the area.

According to Sanny, the existing infrastructure did not support the inflow and outflow of goods from industrial zone. HKI expected the government to add road access to Tanjung Priok port from the industrial zone in Karawang. Currently, there is only one toll road from Jakarta to Cikampek which car volume increases. And, acceleration of construction of Cilamaya port – Karawang must be done immediately/”The government boosted development of industrial zone outside Java, but it is problem of low infrastructures, namely port, road, and bureaucracy”, he said.

The latest is security problem. Security is a very important factor in supporting the creation of a conducive business climate in industrial zone. Therefore, he demanded police’s support to secure industrial zone. He explained that industrial zone is a vital object to the state, and it expected that police could solve demonstration problem that causes industrial zone to be closed. The reason is that demonstration hampers product distribution, which will consequently hamper the entire business circulation in the industrial zone.    

Business News - August 15, 2012

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