Industry Minister Saleh
Husin expects industrial estate development today to not only be filled with
factories, but also equipped with residential, business, education,
entertainment and sports. Such area is called a third-generation industrial
area, which is able to make a new modern and independent industrial city.
“Third-generation industrial zone is proven successful in
spurring local economic growth and is able to respond to economic, social,
culture and environmental challenges as well as capable of transforming itself
into a new modern and independent industrial city,” said Minister of Industry
in his speech at the “Sharing Session and Breaking Fast Together” event
organized by PT Jababeka in Jakarta, on Monday (July 13).
Therefore, the government continues to encourage the
development of new industrial zones into third-generation industrial areas so
as to foster new industrial cities throughout Indonesia. “PT Jababeka Tbk is a
pioneer who developed third-generation industrial area,” said the Minister of
Industry.
As an illustration, first-generation industrial areas are
industrial zones built and managed entirely by the government, where the
government acts as developer, operator and regulator. This stage took place
since the 1970-1980s. First-generation industrial areas are Pulogadung
Industrial Estate – Jakarta, Rungkut Industrial Area – Surabaya, Medan
Industrial Estate; and Makassar Industrial Area. “The government has a very
dominant role in the operation of first-generation industrial area,” he said.
Meanwhile, second-generation industrial areas are
industrial zones built with a simple concept, i.e. as a factory location alone.
This area is growing when Indonesia’s economy was booming, which is in
1990-2000 and in the midst of the growing spirit of deregulation of the
government. “These industrial zones are fully constructed by the private
sector, and the government only acts as regulator,” he explained.
The progress of the industrial sector is believed to be
supported by the provision of industrial locations equipped with a variety of
industry supporting infrastructures, so as to make the industry competitive.
“Therefore, the provision of industrial zones becomes one of the priorities in
the national industrial development program in the future.”
The role of the industrial area in the development of the
national industrial sector is very strategic and significant. Industrial area
accounts for about 40% of the total value of non-oil & gas exports and
attracts investment of 60% of the total investment of the industrial sector as
well as providing a substantial contribution to state revenue in the form of
various taxes. “Until now the number of industrial estates in Indonesia reached
74 industrial zones with a total land area of 30 thousand hectares. But, 67% of
the location of the industrial area is concentrated in Java, “he said.
Therefore, the government has developed direction of
national industrial policy that encourages the development of industrial zoning
outside Java, either in the form of areas designated for industrial purpose,
industrial areas, as well as small and medium-sized industrial centers. In
addition, the government also continues to encourage growth of industry
population as well as increased competitiveness and productivity, especially
for industries outside Java.
“The government will work hard to continue to encourage
the development of new industrial areas, especially outside Java, as part of
even distribution of industry,” said the Minister of Industry. in 2035, it is
expected that percentage of industry distribution outside Java will increase to
40% from 27.22% currently.
To encourage this, the government has set 14 priority
industrial estates to be built outside Java, comprising of 7 industrial estates
built in the Eastern part and the rest in the Western part. Construction of a
new industrial area will be directed to grow into new modern and independent
industrial cities.
On the occasion, the Minister of Industry gave
appreciation to the President Commissioner of PT Jababeka Tbk, Setyono Djunandi
Darmono, for his extensive knowledge and vision of the development of modern
industrial park. “in addition, he is also a true entrepreneur soul who does not
give up and is always optimistic so that he is able and keen to see that
problem is a business opportunity,” he said.
According to the Minister of Industry, the development of
third-generation industrial areas is very relevant to the opinion of SD Darmono
as outlined in the book with the title “One City One Factory: Building 100 new
Cities”. “The concept of One City One Factory is a quite realistic approach in
building industrialization today.”
On the other hand, his party expects that the government
and the business can continue to build synergy and collaboration in order to
accelerate the creation of a new industrial are. Of the 14 priority industrial
estate development outside Java, he said, the government must be able to ensure
and facilitate the anchor industry to start its business in this area.
According to him, to develop industrial estates in the regions, special
incentives were needed to attract investors. (E)
Business News - July 22, 2015
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