As Indonesia marks 50 years of industrial park development, the Ministry of Industry (Kemenperin) is pushing for a transformation towards fourth-generation industrial parks, known as Smart Eco Industrial Parks. These modern parks will integrate advanced technology and environmental considerations to enhance efficiency, productivity, innovation, and sustainability. Minister of Industry Agus Gumiwang Kartasasmita emphasized that industrial parks should implement smart digital infrastructure to support spatial planning, service provision, and waste management. He also highlighted the need for industrial parks to update their infrastructure, particularly energy needs, and to address the continuity of the Specific Gas Price (HGBT) program for the industrial sector. The government is preparing a draft regulation on the use of natural gas for domestic needs, which will include import schemes for industrial parks. This regulation aims to improve the supply of gas to these areas. As of July 2024, 156 companies have obtained Industrial Park Business Licenses (IUKI) and are operational. The total industrial park area spans 76,594 hectares, with 48,087 hectares (65.56%) occupied by tenants or infrastructure. The remaining 34.44% (26,381 hectares) is available for investment.
The recently launched Government Regulation No. 20/2024 on Industrial Zones aims to simplify licensing, standards, and supervision. This regulation is expected to facilitate more integrated, effective, inclusive, and competitive industrial development. Minister Kartasasmita is working on additional regulations to implement Government Regulation No. 20/2024 and establish an industrial park committee to streamline policy synchronization. Feedback from the Indonesian Industrial Park Association (HKI) and business operators is crucial for effective regulation and enhanced industrial park roles. In terms of Halal Industrial Parks (KIH), strategic actions are needed to boost their growth. One proposal is to automate halal certification for industries operating within KIH. The Ministry has also proposed additional incentives for KIH, addressing limited interest from halal industries. HKI Chairman Sanny Iskandar noted that while Indonesia remains a prime investment destination, it faces stiff competition from other countries. Businesses must offer compelling attractions to remain competitive globally. The development of industrial parks also faces challenges such as licensing issues, land and spatial planning certainty, infrastructure, utilities, logistics, labor issues, security, and tax incentives.
