Thursday, 18 December 2014


The Government was striving to decentralize national industrial zones to make it widely spread nationwide, not just concentrated in Java. By end of 2013 last, industrial estate which spread out outside Java only constituted 28% of total existing industrial estates. Now the Government was striving to narrow that gap.

The Ministry of Industry Saleh Husin stated in Jakarta in Monday [10/11] to develop industrial estates was part of the effort to promote national industry. Development of industrial estates in the regions was sound measure in outspreading industry.

The Ministry of industry reported that Java was prevalent in the formation of National GDP constituting 58% while 42% was contributed by areas outside Java. A distinctive condition was posted in industrial sector where Java was prevalent in the formation of GDP from industry. Data of 2013 showed that Java contributed around 72%.

Hence, Husin stated extra effort was needed to decentralize industry from Java to other island. Pursuant to that matter the Ministry of Industry offered incentives to investors who were interested in building industrial estates outside Java. There were there incentives offered by the Government to investors willing to build industrial centers outside Java, especially in East of Indonesia.

The first incentive was infra-structure. To attract foreign to build industry in less intended areas, the Government would build not just infra structure but also supporting facilities like research centers, workshops and training centers.

The second incentive was simplified bureaucracy in the form of One Stop Service in the related industrial zone to drum up more investors to come. The measure was part of the Government’s plan to relax regulations and speed up permit issuance procedures in the regions. The third incentive in the fiscal area, this time different from tax holiday and tax allowance offered by the Government in the past.

Husin disclosed that the Government planned to build and develop 13 industrial zones outside Java and 2 in Java, outside Java, industrial zones would be built in the following locations: Teluk Bintuni in West Papua, Halmahera in North Maluku, Bitung in North Sulawesi, Palu and Morowali in Central Sulawesi, Konawe in South Sulawesi, Bantaeng in South Sulawesi, Batulicin in South Kalimantan, Ketapang and Landak in West Kalimantan, Kuala Tanjung and Sei Mankei in North Sumatra, and Tanggamus in Lampung,

In Java, industrial zones were to be built in JIPE Industrial Estate in Gresik and Sayung Industrial Estate in Demak. Saleh stated that the industrial estates were by instruction of President Joko Widodo, to build at least 10 industrial estates outside Java,

Saleh said that the mission to spread out industry was in line with the Nawa Cita Masterplan, i.e. to increase people’s productivity and competitiveness in the global market so the nation could rise and shine in tandem with other Asian people through Industrial development. (SS)

Business News - November 14, 2014

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