Video: Competing for Investment, Industrial Estates Require Easier Licensing

The Indonesian Industrial Estates Association (HKI) has noted several obstacles for Indonesia in realising investment within industrial estates, ranging from licensing and regulation to inter-agency coordination, which increases uncertainty for investors.

The General Chair of the Indonesian Industrial Estates Association, Akhmad Ma’ruf Maulana, stated that Indonesia’s decline in competitiveness in the IMD World Competitiveness Ranking (WCR) 2026—dropping to 48th position out of 70 countries—poses a challenge to realising investment.

HKI noted that convoluted bureaucratic processes remain a primary issue faced by investors entering Indonesia. Therefore, improvements and the synchronisation of policies are required, alongside the establishment of an institution to oversee investment realisation.

The Wiraraja Madura Industrial Estate is one of the areas being developed to attract investments in sectors such as bioethanol, furniture, textiles, and solar panels, with potential investments reaching IDR 12 trillion from China, Dubai, and Korea.