Industrial Estates Absorb 2.35 Million Workers, Ministry Reports
The Ministry of Industry (Kemenperin) has recorded that industrial estates in Indonesia have absorbed 2.35 million workers, a 15 per cent increase from 2024, with realised investment reaching Rp6,744.58 trillion.
Tri Supondy, Director General of Resilience, Regional, and International Industrial Access (KPAII) at the Ministry of Industry, explained during a meeting with Commission VII of the House of Representatives (DPR RI) in Jakarta on Monday that, according to their data, Indonesia currently possesses 179 industrial estates covering a total area of 101,351.45 hectares, with an occupancy rate of 57.20 per cent.
These estates are inhabited by 11,970 companies or tenants, following an expansion of industrial estate areas by 1,508.02 hectares.
According to Tri, this achievement demonstrates that industrial estates have evolved into national manufacturing hubs capable of attracting sustainable investment while simultaneously enhancing the competitiveness of Indonesian industry.
Furthermore, Tri noted that the development of industrial estates has shown a positive trend in recent years, with the number of industrial estates increasing by 51.69 per cent since 2020, representing an addition of 61 estates.
During the same period, investment value increased by 9.26 per cent compared to the 2024 achievement, while the workforce grew by 15 per cent, from approximately 2.04 million to 2.35 million people.
He added that the distribution of industrial estates is becoming more even; of the total national industrial estate area, approximately 61.24 per cent (62,066.35 hectares) is located outside Java, while 38.76 per cent (39,285.1 hectares) is located on Java.
In terms of quantity, there are 106 industrial estates on Java and 73 outside Java, ensuring that industrial development is no longer concentrated in a single region.
Nevertheless, Tri acknowledged that several challenges remain to be resolved to make industrial estates more competitive. These include certainty in spatial and land planning, strengthening environmental management, providing energy and logistics infrastructure, and accelerating licensing processes.
Additionally, there is a need for improved security within industrial estates, institutional strengthening, optimisation of investment facilities, and increased support for small and medium-sized industries (IKM).
To address these challenges, the Ministry of Industry is working to strengthen regulations through the discussion of the Industrial Estate Bill.
Previously, the Expert Body of the House of Representatives (DPR RI) explained the progress report on the preparation of the Academic Paper (NA) and the Industrial Estate Bill.
The Head of the DPR RI Expert Body, Bayu Dwi Anggono, during a meeting with Commission VII of the DPR RI in Jakarta on Tuesday (23/6), stated that the latest draft of the Industrial Estate Bill now features an expanded regulatory structure compared to previous versions.
“We would like to inform you that there has been progress, specifically the addition of chapters. It now consists of 18 chapters, whereas previously there were 15. The number of articles has also increased,” said Bayu.
He explained that the latest draft of the Academic Paper and the Industrial Estate Bill now comprises 18 chapters covering various strategic aspects of industrial estate management.
These aspects range from general provisions, principles, and objectives, to the national industrial estate development plan, estate construction, infrastructure, industrial workforce development, land matters, security, licensing, and the provision of incentives and facilities.