Over 90 Per Cent of Designated Industrial Estate Land Remains Unused
TEMPO.CO, Jakarta - The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) has recorded that more than 90 per cent of industrial estate land designated in spatial plans remains undeveloped. This condition represents significant potential for increasing investment and national economic growth.
Director General of Spatial Planning at the Ministry of ATR/BPN, Suyus Windayana, said the vast amount of undeveloped land signals strategic opportunities that remain wide open in the industrial sector.
"More than 90 per cent of industrial estate land already designated in spatial plans has not been utilised. This shows that investment opportunities in this sector remain enormous," he said, as quoted from a written statement during the National Dialogue at the 9th National Congress of the Indonesian Industrial Estate Association (HKI), Sunday, 22 June 2025.
Based on data from the ministry led by Nusron Wahid, there are approximately 185,000 hectares of industrial estate land on the island of Sumatra. However, only around 13,000 hectares, or 7 per cent, has been used. Meanwhile, on Java, of the total 350,000 hectares prepared, only approximately 34,000 hectares, or 9.75 per cent, has been utilised.
Suyus added that the main obstacle lies at the execution stage. Although spatial plans are already in place, a number of challenges continue to hinder the maximum utilisation of land. These challenges range from incomplete Spatial Utilisation Activity Conformity (KKPR) permits, slow preparation and integration of Detailed Spatial Plans (RDTR) into the digital business licensing system (Online Single Submission/OSS), to issues surrounding land acquisition and release.
In efforts to accelerate resolution, the government has targeted 2,000 RDTR to be integrated into the OSS system. However, as of mid-2025, only 367 RDTR have been successfully synchronised digitally. The remainder are still in the process of preparation and synchronisation.
Given the openness of available space and the substantial remaining potential, Suyus emphasised the importance of accelerating licensing reform and the utilisation of industrial estate land that has already been planned.
"The Ministry of ATR/BPN is also providing assistance to regional governments, both in the form of budgetary support and technical guidance in the preparation of RDTR," he said.
Director General of Spatial Planning at the Ministry of ATR/BPN, Suyus Windayana, said the vast amount of undeveloped land signals strategic opportunities that remain wide open in the industrial sector.
"More than 90 per cent of industrial estate land already designated in spatial plans has not been utilised. This shows that investment opportunities in this sector remain enormous," he said, as quoted from a written statement during the National Dialogue at the 9th National Congress of the Indonesian Industrial Estate Association (HKI), Sunday, 22 June 2025.
Based on data from the ministry led by Nusron Wahid, there are approximately 185,000 hectares of industrial estate land on the island of Sumatra. However, only around 13,000 hectares, or 7 per cent, has been used. Meanwhile, on Java, of the total 350,000 hectares prepared, only approximately 34,000 hectares, or 9.75 per cent, has been utilised.
Suyus added that the main obstacle lies at the execution stage. Although spatial plans are already in place, a number of challenges continue to hinder the maximum utilisation of land. These challenges range from incomplete Spatial Utilisation Activity Conformity (KKPR) permits, slow preparation and integration of Detailed Spatial Plans (RDTR) into the digital business licensing system (Online Single Submission/OSS), to issues surrounding land acquisition and release.
In efforts to accelerate resolution, the government has targeted 2,000 RDTR to be integrated into the OSS system. However, as of mid-2025, only 367 RDTR have been successfully synchronised digitally. The remainder are still in the process of preparation and synchronisation.
Given the openness of available space and the substantial remaining potential, Suyus emphasised the importance of accelerating licensing reform and the utilisation of industrial estate land that has already been planned.
"The Ministry of ATR/BPN is also providing assistance to regional governments, both in the form of budgetary support and technical guidance in the preparation of RDTR," he said.