Estates only for West Java's future factories<\/p>\n
JAKARTA (JP): The government has ruled that all new industrial
\nplants in Bogor, Tangerang, Bekasi and Krawang in West Java must
\nbe established in industrial estates.<\/p>\n
Minister of Agrarian Affairs\/Chairman of the National Land
\nAgency Soni Harsono has instructed the agrarian offices in the
\nfour regencies to stop issuing location permits to industrial
\nprojects planned outside industrial estates.<\/p>\n
Soni stipulated in a directive issued late last month that new
\nindustrial projects outside the four regencies must also be built
\nin industrial estates except when there were no such estates
\nalready developed.<\/p>\n
The letter of instruction apparently is designed to help
\naccelerate the implementation of the 178 industrial estate
\nprojects covering 53,000 hectares in 17 provinces already
\nlicensed by the government.<\/p>\n
Soni quoted the finding of a study his office made in
\ncooperation with the ministers of industry and trade and
\ninvestment development which showed that only 17,995 of the
\n53,000 hectares licensed for industrial estates had been acquired
\nby the developers.<\/p>\n
He said only 6,369 ha of the acquired land had been developed
\ninto industrial plots ready to accommodate factories.<\/p>\n
Even though many industrial estate projects have been licensed
\nin West Java many investors have applied for permits to set up
\ntheir industrial projects outside industrial estates.<\/p>\n
The study found that many businessmen preferred to build their
\nindustrial projects outside industrial estates, although
\nindustrial estates offer such facilities as one-stop
\nadministration centers for the processing of location and
\nbuilding permits.<\/p>\n
According to Soni, investors who shunned industrial estates
\ncited high land prices, the absence of access roads, extra
\ncharges for infrastructures and inadequately developed facilities
\nas the main reasons for their decision to locate their projects
\noutside industrial estates.<\/p>\n
Soni ordered the heads of all provincial and regency land
\noffices to evaluate the issuance of location permits for
\nindustrial estate projects and to report the results of their
\nevaluation to the National Land Agency.<\/p>\n
The slow implementation of industrial estate projects has been
\ncausing great concern among businessmen, including House members,
\nwho argue that the problem might discourage new investment in the
\ncountry.<\/p>\n
Poor coordination<\/p>\n
Legislator from Golkar ruling party Tadjudin Noer Said said
\nlast week that investors might cancel their projects in the
\ncountry and move them to other countries due to the difficulties
\nof getting land for their plant projects.<\/p>\n
Tadjudin blamed the problem partly on the poor coordination
\nbetween government offices responsible for the processing of
\nlocal permits and for the procurement of land for industrial
\nestates.<\/p>\n
Many industrial estates remain undeveloped because of the lack
\nof cooperation on the part of local administrations to make
\nthings easier for industrial estate developers, he said.<\/p>\n
He said developers often find it extremely difficult to
\nacquire land for their projects because land in the areas
\ndesignated for their estates has been controlled by middlemen.<\/p>\n
\"I am afraid that if this condition does not improve, we will
\nnot reach our investment target for the second long term
\ndevelopment plan which will end in 2019,\" he said.<\/p>\n
Tadjudin suggested that President Soeharto form a special task
\nforce to accelerate the development of industrial estates in a
\nbid to stimulate the implementation of new industrial projects.<\/p>\n
The government has set the target of total investment during
\nthe 25-year development plan at Rp 815 trillion (US$348.3
\nbillion), of which 80 percent is expected to come from the
\nprivate sector. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/estates-only-for-west-javas-future-factories-1447893297",
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"sponsor": "Okusi Associates",
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