The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) revealed that around 90% of designated industrial zones in Indonesia remain unutilized. This figure presents a significant investment opportunity in the industrial sector. According to Director General of Spatial Planning, Suyus Windayana, these allocated areas hold vast potential and could become strategic assets for investment and national economic growth. “More than 90% of industrial zone land designated in spatial planning has yet to be utilized. This shows the enormous investment opportunities still open in this sector,” Suyus stated in a written statement on Sunday (June 22, 2025).
As an example, Suyus pointed out that only 13,000 hectares—or about 7%—of the 185,412 hectares of industrial land in Sumatra have been used. On Java Island, just 34,000 hectares out of a total 350,539 hectares have been utilized. He noted that although spatial plans are in place, execution remains the main challenge, ranging from obtaining the Spatial Utilization Activity Suitability Permit (KKPR) to the readiness of Detailed Spatial Plans (RDTR), and land acquisition issues. While acknowledging the hurdles, including incomplete KKPR permits and slow RDTR integration into the Online Single Submission (OSS) system, the government aims to expedite progress by targeting 2,000 RDTR integrations. However, as of mid-2025, only 367 have been completed, with the rest still undergoing synchronization and digitization.
