Indonesia's industrial estates employ 2.35 million workers

Speaking before House of Representatives Commission VII in Jakarta, Industry Ministry Director General Tri Supondy said Indonesia has 179 industrial estates covering 101,351.45 hectares.

The estates have an occupancy rate of 57.20 percent, housing 11,970 tenant companies. Their combined expansion reached 1,508.02 hectares.

Tri said the figures underscore the growing role of industrial estates as manufacturing hubs capable of attracting long-term investment and strengthening Indonesia’s industrial competitiveness.

He said the number of industrial estates has increased by 51.69 percent, or 61 new estates, since 2020, while realized investment rose 9.26 percent from 2024.

Industrial development is becoming more geographically balanced, with 62,066.35 hectares, or 61.24 percent of industrial estate land, located outside Java and 39,285.1 hectares, or 38.76 percent, on the island.

Indonesia has 106 industrial estates on Java and 73 outside the island, reflecting broader industrial expansion beyond the country’s traditional manufacturing base.

Tri said challenges remain, including land-use certainty, environmental management, energy and logistics infrastructure, and faster licensing procedures.

Other priorities include improving security, strengthening institutional capacity, optimizing investment incentives, and expanding support for small and medium-sized industries.

To address those issues, the Industry Ministry is supporting deliberations on a bill aimed at strengthening the regulatory framework for industrial estates.

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Translator: Ahmad Muzdaffar, Raka Adji