Tuesday, 19 January 2016


The Ministry of Industry proposes the development of six industrial growth areas, 25 industrial allotment zones in the draft States Budget (APBN) 2016. Imam Haryono, Director General of Industry, in Jakarta, on Monday (September 21), said that the government also proposed the development of 14 industrial areas outside Java as well as five centers of small and medium industries (SMI).

According to Imam, for the development of 25 industrial allotment zones, the Ministry of industry plays a role in making a determination which must be followed up by the local government by making regional regulations as well as spatial planning. For the development of six industrial growth centers that have been set the government in Government Regulation No. 14/2015 on the National Industrial Development Plan for 2015 – 2023.

Imam said that the selection of six industrial growth areas is based on the consideration that it is included in 14 industrial estates as well as capable to be the new node connectivity with indicators of lower logistic cost. In the arrangement of the master plan, the Ministry of Industry calculates all the needs of area development, such as infrastructure support, airports, bridges, roads and other, the coordinated with the relevant ministries for the procurement.

In order to accelerate development, said Imam, the Government has provided incentives for private developers of industrial zones to attract private sector interest. The Government gives tax holiday incentives to for five industrial sectors, such as renewable natural resources, petrochemicals industry, coal gasification as producer of methanol, basic metal materials industry and machinery industry.

The incentives are given to pioneer industries which have been established for 12 months at the maximum.  Other requirements that need to be met placement of fund at least 10% of the total planned investment also gives tax allowance and import duty exemption.

According to him, incentive is not the main requirement for developing industrial estates. What is important is infrastructure to accelerate distribution based on geopolitical, geostrategic and geo economic considerations. Additionally, adequate infrastructures, such as roads, ports, airports, electricity, and so on, ”And, services need to be improved,” said Imam.

Meanwhile, Executive Director of the Industrial Area Association (HKI), Fahmi shahab, believed that the acceleration of infrastructure development becomes the driving factor to increase the accupancy rate of the industrial areas which recently only reached 11.929.9 hectares of the total areas of 32.175.2 hectares. He said that the acceleration of infrastructure development outside Java will attract the attention of the government. Data from HKI of semester l/2015 shows that the total industrial areas with a total land area of 44.482.9 hectares. Meanwhile, the new areas that have been built were only 11.929.9 hectares with a total number of 9.198 occupants.

Fahmi said that the Draft Government Regulation on Industrial Zone has included proposal of fiscal/non-fiscal incentives zoning system. According to him if these items area included, the industrial areas outside Java will be more quickly realized. He said that the private sector had seen an opportunity to occupy the development of 14 areas, but the government must first initiate it through infrastructure access and energy network.

Of the total area of industrial estates, according to him, not all of them were intended for tenants, but 30% is spared for green open areas and infrastructures. Of the industrial estate spread area, Jakarta tops the list with occupancy reaching 68.2% of the total area, followed by Bekasi (59.06%), Karawang (51.04%), and Riau Island (47.12%). (E)

Business New - September 23, 2015

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