The Indonesian government is accelerating the development of National Strategic Projects (PSN) in industrial zones to drive economic growth and resource-based industrialization. As stipulated in Coordinating Ministerial Regulation No. 7/2021 and its amendment in No. 12/2024, 41 PSN industrial projects are projected to secure a total investment of IDR 2,785 trillion by 2039. Minister of Industry Agus Gumiwang Kartasasmita stated that this investment includes infrastructure development and tenant expansion within these zones. As of 2024, the realized investment has reached IDR 68 trillion, with medium-term targets set at IDR 481 trillion by 2029. This projection aligns with President Prabowo’s commitment to advancing downstream industries to boost domestic value-added production.
Furthermore, the government emphasizes the importance of eco-friendly industrial zones, as outlined in Government Regulation No. 20/2024. These zones must integrate environmental, social, economic, and management aspects. Data from the Ministry of Industry reveals that industrial greenhouse gas emissions rose to 238.1 million tons CO2e in 2022 from 222.9 million tons CO2e in 2021, primarily driven by industrial energy use. To address this, the ministry is preparing regulations on industrial emission reduction to support Indonesia’s net-zero target before 2050. By November 2024, 165 industrial zone companies held operating licenses, with 59.76% of 94,054 hectares already occupied, leaving 40.24% available for new investments. The government aims to complete all PSN projects by 2025 to support equitable industrialization and sustainable development.
