Coordinating Minister Airlangga: Industrial Estates Are National Economic Drivers

Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that industrial estates are a key weapon for attracting major investors and accelerating national economic growth amidst global challenges. Speaking at the 38th anniversary celebration of the Indonesian Industrial Estates Association (HKI) in Jakarta, he noted that the industrial sector plays a strategic role as a primary engine for the economy through increased investment, job creation, and enhanced competitiveness. To support the target of 8 percent economic growth, the government is strengthening the development of industrial estates integrated with infrastructure and connectivity, while adapting to downstreaming, energy transition, and digital transformation. Airlangga pointed to the development of the North Java Corridor, stretching from Bekasi to Eastern Indonesia, as a prime example of this growth. Currently, there are 129 industrial estates across 24 provinces covering approximately 170,000 hectares, hosting around 10,400 manufacturing companies and employing 4.5 million workers. He asserted that industrial estates are a driving force for the nation, creating jobs and improving welfare. Amidst dynamic global investment competition, Indonesia sees an opportunity as rival nations face rising labour costs, limited land availability, and energy constraints. A Japan External Trade Organization (JETRO) survey indicates that 70 percent of Japanese companies investing in Indonesia are profitable, the highest rate compared to other countries. The government is also pushing for digital adaptation, anticipating the needs of AI development and data centres through initiatives like the ASEAN Digital Economy Framework Agreement. Airlangga affirmed the government’s commitment to fostering a well-organised industrial ecosystem and resolving investment barriers. HKI Chairman Akhmad Ma’ruf Maulana reiterated the association’s commitment to bringing investment into various regions, while a ministry spokesperson expressed optimism that policy debottlenecking and strengthened stakeholder collaboration would overcome existing challenges.