Development of industrial zones, both in Java and outside Java, becomes
one of the priority policies of the Government. Industrial parks are being built
as one of the priority policies of the Government is the industrial sector.
There are seven major infrastructures that must be prepared to build an
industrial area, i.e. electricity, water, gas, labor, access roads, airports
and ports. Currently, Jababeka is one area that already has a complete
infrastructure for an industrial park and will be expanded to other areas
outside Java.
However, the government’s efforts seem not to produce maximum results.
Evidently, investors’ interest to invest in the industrial parks is still
relatively low. The Ministry of Industry judges that construction and
development of industrial estates in the regions are still constrained by
investment. During this time, regional government’s desire to develop
industrial center in each region is quite large, but it is still hampered by
investors who want to invest. In fact, the development of industrial centers
must be done in order to encourage the growth of national industry.
Director General of Industrial Zoning Development at the Ministry of
Industry, Dedy Mulyadi, Tuesday (4/16) said that development of industrial area
needs a very large amount of funds and involves investors from within and
outside the country. He pointed out that to construct an industrial area; it
takes a minimum of 1,000 hectares of land, including the supporting
infrastructure. In fact, the 1, 000 hectare land area has to be coupled with
around 200,000 – 300,000 square meters to build public facilities in the
industrial environment. In order for the development of an integrated
industrial park to be realized, government in the region should be able to woo
big investors and has substantial funds. “In fact, we have not been able to
attract more investors to the industrial park”, Dedy said.
Dedy acknowledged that the role of the Indonesia government in the
development of industrial lands in minimal compared to the role of the private
sector. One of the consequences is that it is difficult to regulate the
stability of land price increases that often weigh on investors when it entered
into the industrial area. It is said that on condition of the market mechanism,
it is difficult for the government o fully regulate the price of land in the
industrial park because it is related to supply and demand.
Pattern of development of industrial areas in Indonesia, which is
currently 6%, is done by the government and 94% by the private sector. This
condition is different from some other Asian countries. In comparison, 78% of
industrial estate development in Malaysia is done by the government and 22% by
private. In Japan, the proportion is 85% government and 15% private, and South
Korea 70% government and 30% private. The percentage stated contribution in the
form of capital investment. According to Dedy, development of new industrial
areas should be encouraged, both in the economic corridor of Java, Sumatera,
Kalimantan, Sulawesi, and in the economic corridor of Papua and Maluku islands.
Projected demand for land is 12.5 hectares of industrial area for
investment worth Rp1 trillion. This projection is based on data in 2011, when
the industrial park land sales reached 1, 247.84 hectares while the total
foreign and domestic investments in the industrial sector valued at Rp99.64
trillion. Total land area of the remaining industrial estates until now is
7,911.98 hectares. While the projected needs of the industrial park land in
2013 covers an area of accompany investment entry in 2014 is projected at
2,847.10 hectare, and in 2015 an area of 3,416.53 hectare.(E)
Business News - April 19,2013
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