Indonesian Political, Business & Finance News

HKI urges faster investment in national industrial zone development

| Source: ANTARA_ID Translated from Indonesian | Infrastructure
HKI urges faster investment in national industrial zone development
Image: ANTARA_ID

The Indonesian Industrial Zones Association (HKI) has urged accelerated investment in national industrial zones through enhanced inter-ministerial coordination. HKI Chairman Akhmad Ma’ruf Maulana stated in an official statement on Friday that Indonesia remains highly attractive for investment, supported by a large domestic market, downstreaming agenda, and strategic position in global supply chains.

A strategic meeting between HKI and the Presidential Staff Office (KSP) in Jakarta today discussed measures to accelerate industrial zone investment, addressing various obstacles and solutions. Chaired by KSP Chief Dudung Abdurachman, the meeting tackled investment hurdles faced by industrial zones and accelerated resolution steps.

Ma’ruf noted investors still face challenges with the speed of investment execution. “Investor interest in entering Indonesia remains high, but their concern is how to make the investment process faster, more coordinated, and with clear timelines. This is what we discussed with the KSP,” he said.

Furthermore, HKI raised strategic issues affecting industrial zones across regions, including implementation of National Strategic Projects (PSN), Special Economic Zone (KEK) development, Land Use Compatibility Process (KKPR), electricity supply business area development, spatial coordination, and the investment climate.

Ma’ruf said most issues require strengthened inter-ministerial coordination to resolve them faster and provide certainty for investors. HKI welcomed the government’s commitment to advancing industrial zones and hopes for more effective coordination mechanisms to address investment bottlenecks hindering national industrial development.

“This meeting brings new optimism for industrial zone operators. Investors currently need certainty, speed, and policy coordination. We see strong commitment from the KSP to help resolve investment obstacles that have been hindering on-the-ground progress,” Ma’ruf added.

HKI currently comprises over 170 industrial zones across 24 provinces, covering approximately 160,000 hectares. These zones are crucial for industrial downstreaming, manufacturing development, job creation, and enhancing national economic competitiveness.

Ma’ruf affirmed HKI is ready to be a strategic partner to the government in overseeing the acceleration of national industrialisation.

Meanwhile, KSP Chief Dudung reaffirmed his office’s commitment to resolving obstacles hindering investment and industrial zone development acceleration. He said his office will inventory on-the-ground issues to find solutions, adding the KSP will strengthen inter-ministerial and institutional coordination, particularly for long-standing issues delaying investment implementation.

Dudung also highlighted industrial zones’ strategic role in supporting national industrialisation, natural resource downstreaming, job creation, and sustainable economic growth.

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