Sunday, 3 January 2016


The Ministry of Industry was constantly striving to develop industrial centers outside Java; the objective was to keep industrial centers from being concentrated in Java. Data of the Ministry of Industry had it that today Indonesia had 47 industrial zones on areas totaling 30,000 hectares. However of that number 73% if them was still concentrated in Java.

In developing industrial zones outside Java, Imam Haryono, the Director General of Industrial Zones stated in Jakarta on Monday (24/8) that the Government would offer special incentives to industrial centers located outside Java. The incentives would be declared in Government’s Regulation Plan (RPP) on industrial zones.

Imam said that there were at least two things to be regulated in that new policy: 1. The Government would include a clausule of land procurement to classify industrial center as public utility 2. To offer more fiscal incentives to industrialists. Imam further explained that the special treatment was intended to drum up mire investors to invest outside Java.

He showed as an example development of supporting facilities in 14 industrial zones was still hard to realize due to land clearing problem. All in all, only the industrial zones in Morowai and Konawe developed. Both could run well thanks to initiative from the private sector; while development of infra structure in other locations like Kuala Tanjung, Palu and Bitung were not realized.

Besides, Imam said, they Government would promote growth of industry population and strengthening of competitiveness md productivity for industries outside Java. He underscored that the Government would work hard to enhance development of new industrial zones as priority, for that matter he was expecting expansion of industry outside Java to think that today industries outside Java constituted only 27% of total national industry soon to be increased to 40% in 2035.

The same was disclosed by Franky Sibarani head of BKPM, who said that today the Government was preparing of offer fiscal incentives in the industrial zone. He started that the Government was preparing to offer fiscal incentives for Exclusive economic Zones (KEK), Tax Free Harbors and Free Trade Zone (KPBPB), Industrial Zones, Bonded Warehouse (KB), and export Industry Zones (KTE).

He further elaborated that various other incentives were being prepared like tax holiday and tax allowance. BKPM would develop industrial zones and economy zones through investment marketing. For information, the Government in RPJM 2015 – 2019 the Government planned to develop 14 industrial zones in 5 years. In case of KEK, the Government planned to develop 17 new KEK, 10 of which were for tourism.

The Government was optimistic that industrial zones could bring positive impact on economic development and people’s economy. Franky said that development of industrial zones were not only connected with harbors, powerhouses, logistic centers and railway but also with local small supplier centers. (SS)

Business News - August 28, 2015

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