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Indonesian Industrial Estates Association Calls for Stronger Regulations to Boost Manufacturing Investment

| Source: GALERT
JAKARTA - The Association of Indonesian Industrial Estates (HKI) held a National Dialogue entitled "Optimising the Role of Industrial Estates: Strengthening the Competitiveness of Manufacturing Industry Investment in the Context of Job Creation" at the JS Luwansa Hotel, Kuningan, Jakarta, on Thursday, 19 June 2025.

At the forum, the General Chairperson of HKI for the 2025-2029 period, Akhmad Ma'ruf Maulana, emphasised the need for concrete steps to strengthen the industrial estate investment ecosystem amidst the Government's ambitious target of encouraging national economic growth.

Ma'ruf stressed that industrial estates in Indonesia need to be protected by strong and specific regulations. He assessed that industrial estates currently lack adequate rules to support their strategic role in attracting investment and creating jobs.

"The government has a target of 8 per cent economic growth in the next five years. So, we have invited the relevant ministries. This concerns the problems faced by industrial estates. We are asking for a stronger legal umbrella so that there is a special article in the Industrial Law in the future, providing clear rules of the game," said Ma'ruf.

According to him, if the 120 industrial estates spread throughout Indonesia were combined, they would constitute a major economic force that must be supported by legal certainty.

Ma'ruf revealed that industrial estates are currently still facing a number of obstacles in the investment process, ranging from high energy costs such as gas, slow licensing processes, to bureaucracy across various ministries and institutions.

"If we are ready or not, from the start we welcomed the industry that we brought to Indonesia. Only the regulations are not supportive. There are high costs, including gas and slow licensing such as AMDAL [Environmental Impact Assessment]," he said.

HKI, Ma'ruf continued, has held dialogues with a number of 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 (ATR/BPN), and will involve the Ministry of Environment in further discussions. The results of these discussions will be summarised and submitted to the Government as policy input.

One of Ma'ruf's priorities as HKI Chairman is to encourage the acceleration of investment licensing. He hopes that the investment acceleration task force involving related ministries and institutions can be inaugurated immediately through an official decree so that the acceleration process can be carried out effectively.

"We encourage the acceleration of licensing to be implemented quickly. Every relevant ministry or institution is not aligned. Sometimes in the regions it is also not in line. Therefore, we hope that the investment task force can be quickly resolved so that it can be implemented promptly," said Ma'ruf.

Ma'ruf also stated that his party would form a team with the Ministry of Industry and the Ministry of Investment and Downstreaming/BKPM to oversee the process of accelerating investment. He emphasised that HKI will serve as a strategic bridge between industry players, the community, and the government.

"We will form a team together with the Ministry of Industry and the Ministry of Investment and Downstreaming/BKPM to oversee this. Of course, once again, we will involve ourselves and engage in accelerating investment," said Ma'ruf.

The National Dialogue featured speakers from various 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 (ATR/BPN), and the Ministry of Manpower.
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