Industrial Estate Association proposes new body to streamline coordination
Jakarta (ANTARA) - The Indonesian Industrial Estate Association (HKI) has requested the formation of a national industrial estate agency that operates directly under the President and possesses full authority to regulate industrial zones.
“The norm within the proposed legislation is that a national industrial estate agency needs to be established,” said the Vice Chairman of HKI Indonesia, Didik Prasetiyono, during a Public Hearing (RDPU) with the Industrial Estate Bill Working Group at the DPR in Jakarta on Monday.
The formation of this agency is proposed because various sectors are currently involved in managing industrial estates; therefore, an agency with full authority specifically for industrial zones is required.
HKI assesses that the issues faced by industrial estates are quite complex due to the involvement of multiple ministries. Consequently, there is a need for a single institution to synchronise regulations from the central government, ministries, agencies, provincial governments, and regency or municipal governments.
“This new agency would be a non-ministerial institution established by law, led by a head appointed by the President, and accountable to the President,” he stated.
He added that HKI does not wish to change environmental regulations, labour laws, or other regulations outside of the industrial estates. However, within the industrial estates, there must be a single body to regulate these matters to ensure coordination, synchronisation, and the facilitation of resolving obstacles involving various ministries, agencies, local governments, and other stakeholders.
“Thus, there will be a dedicated space to regulate the context of industrial estates to make processes easier,” he said.
Meanwhile, the Vice Chair of Commission VII of the Indonesian House of Representatives (DPR-RI), Rahayu Saraswati Djojohadikusumo, noted that forming a new agency or institution is not easy and will undoubtedly face public criticism.
“The concern is how to form this agency without adding further bureaucracy. Why not strengthen the Investment Coordinating Board (BKPM) or the Ministry of Industry to make them more effective?” she asked.