Minister of Industry: The Government Continues to Encourage National Industrial Zone

INDUSTRY.co.id - Jakarta - The development of industrial estate is one of the government's efforts to reduce domestic economic inequality. This is to realize Indonesia centric. The government set as many as 23 industrial estates listed in the national strategic project (PSN), so that its development can be prioritized.

This was conveyed by Minister of Industry, Airlangga Hartarto through his facebook page @Airlangga Hartarto in Jakarta (6/8/2017).

According to him, to improve the competitiveness of industrial estates, the most important thing to do is infrastructure development and human resource development (HR). In addition, good work is also required between the central government and associated industrial area managers.

"To improve the competitiveness of industrial zones that are being undertaken, the availability of infrastructure becomes an important point and the quality improvement of human resources," said Airlangga.

Previously, Airlangga said, the development of industrial estate needs to increase connectivity between infrastructure such as roads, ports and railways. "The most important is also the energy infrastructure of gas and electricity," he explained.

As is known, the industrial estate plays a strategic role in encouraging the development and economy of Indonesia. This is evident from the increased efficiency and ease of infrastructure providers as well as efforts in attracting investment and providing extensive employment.

Some indicators indicate that the accelerated spread of industrial development is already on the right track and showing satisfactory results. In 2014, the industrial sector outside Java contributes 16.53 percent of the total GRDP and in 2016 it increases to 16.84 percent.

Furthermore, the contribution of outside Java in the GDP of non-oil and gas processing industry shows an increasing trend. In fact, slowly the non-oil and gas processing industry sector began to shift out of Java. This is evident from the increasing contribution of the non-oil industry sector from 27.47 percent in 2014 to 28.06 percent of the total value added industry sector
National non-oil and gas by 2016.

Based on data of Ministry of Foreign Affairs, direct investment in the form of Foreign Direct Investment (PMA) outside Java in the period 2010-216 continues to increase both in terms of value and contribution. Total foreign direct investment that goes outside Java continues to increase from USD13, 09 billion in 2014 to USD14, 19 billion in 2016. For PMDN value also continues to increase from Rp59, 02 trillion in 2014 to Rp89, 88 trillion in 2016.

On the other hand, Chairman of the Industrial Estate Association (HKI), Sanny Iskandar requested that the government continue to focus on accelerating infrastructure development in an effort to support the development of industrial areas in Java and outside Java. With the support of infrastructure development, especially in the form of power plants and the availability of competitive gas prices are expected by the developers of the industrial estate.

"We believe that the development of integrated industrial zones will encourage the achievement of economic equity and welfare targeted by the government," he concluded.