Around 90 Per Cent of Indonesia's Industrial Estate Land Remains Idle
JAKARTA — Approximately 90 per cent of industrial estate land in Indonesia remains unused. This fact was disclosed directly by the Director General of Spatial Planning at the Ministry of Agrarian Affairs and Spatial Planning (ATR/BPN), Suyus Windayana, during the National Dialogue of the 9th National Congress of the Indonesian Industrial Estate Association (HKI) in Jakarta on Thursday (19/6/2025).
"The space is already available, but only a small portion has been utilised. This represents a golden opportunity for investors," said Suyus.
According to data from the Ministry of ATR/BPN, in Sumatera, of the 185,412 hectares of planned industrial estate, only around 7 per cent has been utilised. In Java, of the 350,539 hectares, only 9.75 per cent is currently in use.
Suyus explained that execution remains the primary challenge. Issues ranging from the licensing process for Spatial Utilisation Activity Conformity (KKPR), the readiness of Detailed Spatial Plans (RDTR), to land acquisition matters continue to pose obstacles.
"We are accelerating the completion of RDTR and the Online Single Submission (OSS) system so that investment can flow in without prolonged barriers," he explained.
The government is currently targeting the integration of 2,000 RDTR into the OSS system. However, as of mid-2025, only 367 RDTR have been successfully incorporated into the system. The remainder are still undergoing digitalisation and synchronisation.
Nevertheless, the central government is not standing idle. The Ministry of ATR/BPN continues to provide full support to regional authorities, both in terms of budgetary allocation and technical assistance for the preparation of RDTR. The objective, Suyus continued, is to transform these vacant lands into productive industrial estates capable of driving national economic growth.
"The space is already available, but only a small portion has been utilised. This represents a golden opportunity for investors," said Suyus.
According to data from the Ministry of ATR/BPN, in Sumatera, of the 185,412 hectares of planned industrial estate, only around 7 per cent has been utilised. In Java, of the 350,539 hectares, only 9.75 per cent is currently in use.
Suyus explained that execution remains the primary challenge. Issues ranging from the licensing process for Spatial Utilisation Activity Conformity (KKPR), the readiness of Detailed Spatial Plans (RDTR), to land acquisition matters continue to pose obstacles.
"We are accelerating the completion of RDTR and the Online Single Submission (OSS) system so that investment can flow in without prolonged barriers," he explained.
The government is currently targeting the integration of 2,000 RDTR into the OSS system. However, as of mid-2025, only 367 RDTR have been successfully incorporated into the system. The remainder are still undergoing digitalisation and synchronisation.
Nevertheless, the central government is not standing idle. The Ministry of ATR/BPN continues to provide full support to regional authorities, both in terms of budgetary allocation and technical assistance for the preparation of RDTR. The objective, Suyus continued, is to transform these vacant lands into productive industrial estates capable of driving national economic growth.