Slow industrial estate growth lamented

Slow industrial estate growth lamented

JAKARTA (JP): Industrial estate development occupies about 11
percent of the total area allocated for it nation-wide, an
official said yesterday.

"Moreover, of the total land approved to be converted into
industrial estates, only 35 percent has been acquired," a deputy
chairman of the National Land Agency, Nad Darga Talkur Putra,
said yesterday at a seminar of the Indonesian Industrial Estates
Association.

"It's very disappointing. The two figures say there is a large
amount of waste land not being utilized, including the land which
has already been acquired," Putra said.

He said industrial estates may be less attractive to investors
because developers have set high sale or lease prices.

"That is why many companies prefer to build their factories
outside industrial estates," he said.

Putra also said developers might have delayed industrial
estate development because of poor infrastructure support,
including roads, telecommunications and electricity.

Commenting on the difficulties of acquiring land , Putra said
"Developers must not sacrifice public interests. The public
deserves fair prices for its land."

"And one thing is for sure, don't ever involve the government
in any efforts to acquire land," he said, adding that "several
developers have tried to ask the government for help."

Several executives argued that industrial estates needed
greater tax incentives to boost their performances.

Yesterday's meeting was also attended by the association's
honorary advisor, Sudwikatmono.(alo)