House Commission VII Advances Industrial Estate Bill to Provide Legal Certainty

The House of Representatives’ (DPR) Commission VII is prioritising a comprehensive philosophical, juridical, and sociological foundation in drafting the Industrial Estate Bill to ensure broad benefits for the government, businesses, and local communities. The commission is currently refining the draft law to provide legal certainty and uphold principles of justice for all stakeholders. Saleh Partaonan Daulay, Chair of Commission VII, stated during a working visit to the Milenium Industrial Estate in Tangerang Regency that there is currently no specific law governing industrial estates, with existing juridical rules scattered across various government regulations and other laws. He noted an urgent need for a dedicated legal umbrella to regulate industrial estates in an integrated manner, as the current fragmented approach is considered suboptimal. The draft bill is designed to foster harmonious relations through two main communication aspects, including vertical communication, requiring synchronisation between central and regional government programmes to prevent management from being concentrated in one party. It also highlights the importance of relationships between large companies operating in industrial estates and local micro, small, and medium enterprises (MSMEs) as well as the surrounding community. A crucial point in the draft is the push for large companies within industrial estates to optimise cooperation with local MSMEs to meet their production needs. Furthermore, the obligation for Corporate Social Responsibility (CSR) is a serious concern, aimed at preventing negative impacts on local communities from company activities, such as damage to road infrastructure around operational areas. Saleh emphasised the need to ensure sustainability and fairness, so that while companies profit from the region, local communities also experience positive impacts rather than suffering losses like damaged roads caused by operational vehicle traffic.