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)