Indonesian Industrial Estate Association Calls for Stronger Regulations to Boost Manufacturing Investment
JAKARTA - The Indonesian Industrial Estate Association (HKI) held a National Dialogue entitled "Optimising the Role of Industrial Estates in Strengthening Manufacturing Investment Competitiveness for Job Creation" at the JS Luwansa Hotel, Kuningan, Jakarta, on Thursday, 19 June 2025.
At the forum, HKI Chairman for the 2025-2029 period, Akhmad Ma'ruf Maulana, stressed the need for concrete steps to strengthen the industrial estate investment ecosystem amid the Government's ambitious targets for driving national economic growth.
Ma'ruf emphasised that industrial estates in Indonesia need to be protected by strong and specific regulations. He noted that industrial estates currently lack adequate rules to support their strategic role in attracting investment and creating employment.
"The Government has an economic growth target of 8 per cent over the next five years. So we have invited the relevant ministries," he said. "This concerns the problems faced by industrial estates. We are requesting a stronger legal framework so that there are specific provisions in the future Industrial Law, with clear rules of the game."
According to Ma'ruf, if the 120 industrial estates spread across Indonesia were combined, they would constitute a major economic force that must be supported by legal certainty.
Ma'ruf further revealed that industrial estates currently face numerous obstacles in the investment process, ranging from high energy costs such as gas, sluggish licensing procedures, to bureaucracy across various ministries and agencies.
"Whether ready or not, from the outset we are the ones who welcome the industries we bring to Indonesia. It is just that the regulations are not supportive," he said. "There are high costs, including gas, and slow licensing processes such as AMDAL (Environmental Impact Assessment)."
HKI, Ma'ruf continued, has engaged in dialogue with several ministries including the Ministry of Investment, the Ministry of Energy and Mineral Resources, and the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency, and will involve the Ministry of Environment in subsequent discussions. The outcomes of these discussions, Ma'ruf said, will be compiled and submitted to the Government as policy input.
One of Ma'ruf's priorities as HKI Chairman is to accelerate investment licensing. He expressed hope that the investment acceleration task force involving relevant ministries and agencies could be formally established through an official decree so that the acceleration process can be implemented effectively.
"We are pushing for the licensing acceleration to be carried out swiftly. The problem is that the relevant ministries and agencies are not in sync," he said. "Sometimes at the regional level they are also not aligned. Therefore, we hope the investment task force can be quickly formalised through a decree so it can be implemented promptly."
Ma'ruf also stated that his organisation would form a joint team with the Ministry of Industry and the Ministry of Investment and Downstreaming/BKPM to oversee the investment acceleration process. He affirmed that HKI would serve as a strategic bridge between industry players, the public, and the Government.
"We will create a joint team with the Ministry of Industry and the Ministry of Investment and Downstreaming/BKPM to oversee this. Once again, we will involve ourselves in the investment acceleration effort," Ma'ruf said.
The National Dialogue featured various speakers from several ministries, including the Ministry of Investment and Downstreaming/BKPM, the Ministry of Energy and Mineral Resources, the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency, and the Ministry of Manpower.
At the forum, HKI Chairman for the 2025-2029 period, Akhmad Ma'ruf Maulana, stressed the need for concrete steps to strengthen the industrial estate investment ecosystem amid the Government's ambitious targets for driving national economic growth.
Ma'ruf emphasised that industrial estates in Indonesia need to be protected by strong and specific regulations. He noted that industrial estates currently lack adequate rules to support their strategic role in attracting investment and creating employment.
"The Government has an economic growth target of 8 per cent over the next five years. So we have invited the relevant ministries," he said. "This concerns the problems faced by industrial estates. We are requesting a stronger legal framework so that there are specific provisions in the future Industrial Law, with clear rules of the game."
According to Ma'ruf, if the 120 industrial estates spread across Indonesia were combined, they would constitute a major economic force that must be supported by legal certainty.
Ma'ruf further revealed that industrial estates currently face numerous obstacles in the investment process, ranging from high energy costs such as gas, sluggish licensing procedures, to bureaucracy across various ministries and agencies.
"Whether ready or not, from the outset we are the ones who welcome the industries we bring to Indonesia. It is just that the regulations are not supportive," he said. "There are high costs, including gas, and slow licensing processes such as AMDAL (Environmental Impact Assessment)."
HKI, Ma'ruf continued, has engaged in dialogue with several ministries including the Ministry of Investment, the Ministry of Energy and Mineral Resources, and the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency, and will involve the Ministry of Environment in subsequent discussions. The outcomes of these discussions, Ma'ruf said, will be compiled and submitted to the Government as policy input.
One of Ma'ruf's priorities as HKI Chairman is to accelerate investment licensing. He expressed hope that the investment acceleration task force involving relevant ministries and agencies could be formally established through an official decree so that the acceleration process can be implemented effectively.
"We are pushing for the licensing acceleration to be carried out swiftly. The problem is that the relevant ministries and agencies are not in sync," he said. "Sometimes at the regional level they are also not aligned. Therefore, we hope the investment task force can be quickly formalised through a decree so it can be implemented promptly."
Ma'ruf also stated that his organisation would form a joint team with the Ministry of Industry and the Ministry of Investment and Downstreaming/BKPM to oversee the investment acceleration process. He affirmed that HKI would serve as a strategic bridge between industry players, the public, and the Government.
"We will create a joint team with the Ministry of Industry and the Ministry of Investment and Downstreaming/BKPM to oversee this. Once again, we will involve ourselves in the investment acceleration effort," Ma'ruf said.
The National Dialogue featured various speakers from several ministries, including the Ministry of Investment and Downstreaming/BKPM, the Ministry of Energy and Mineral Resources, the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency, and the Ministry of Manpower.