New Industrial Estates See 65 Percent Occupancy. What Are the Obstacles?
The Chairman of the Indonesian Industrial Estates Association (HKI), Akhmad Maruf Maulana, stated that the occupancy rate for industrial estates currently stands at around 60–65 percent. “However, our members are still expanding. The expansion they have secured cannot yet be realised due to many obstacles,” Maruf said at the Pullman Hotel in Jakarta on Thursday, 30 July 2026.
Maruf noted that the competitiveness of industrial estates still lags behind neighbouring countries such as Vietnam, Malaysia, and Thailand. According to him, lengthy bureaucracy and a lack of alignment between the central government and regional administrations cause Indonesia’s competitiveness to be less prominent.
To accelerate investment realisation, Maruf said business players are emphasising the importance of deliberating the Draft Law on Industrial Estates. He mentioned that he has attended two hearing meetings with the House of Representatives (DPR) regarding the bill’s discussion.
He also stressed that industrial estate developers do not merely lease land but also build their own factories within the estates. He confirmed that investment in industrial estates is not only occurring on the island of Java.
Meanwhile, Minister of Industry Agus Gumiwang Kartasasmita said the results of the HKI national working meeting would serve as input for the deliberation of the Industrial Estates Bill in the DPR. He stated that the forum is important because it reviews various challenges experienced by business players to provide input for the draft law.
“This can be submitted to the DPR RI to complement and perfect the draft we are currently discussing,” Agus said.
Agus stated that the government and the DPR have begun deliberating the draft law. He said the discussion would be conducted carefully and professionally in regulating matters related to industrial estate development.
The Golkar Party politician said that industrial estates are not just about providing land, but also about ensuring that processes can run quickly for investors.
Agus expressed hope that the draft law could be passed soon. He is targeting the bill’s ratification within a period of two to three quarters. “When I say in the shortest possible time, it does not mean the discussion will not be detailed; we will carry it out responsibly,” he said.