Increased Area Surpassed 42 Percent, Minister of Industry Spur Development of Industrial Area of Outer Java

By : Ridwan And Aldi Firhand. A | Wednesday, June 27 2018 - 23:48 IWST

Airlangga Hartarto
Airlangga Hartarto

INDUSTRY.co.id - Cikarang, The development of industrial parks in Indonesia shows an increase both in terms of number and breadth. In 2014, there are 74 industrial areas with an area of ​​36.3 thousand hectares (Ha) and in 2017 to as many as 87 industrial areas with an area of ​​59.7 thousand Ha.

"Meanwhile, for industrial areas outside Java has increased from 28.01 percent in 2014 to 42.42 percent in 2017," said Minister of Industry Airlangga Hartarto in Cikarang, Bekasi (26/6/2018).

Minister of Industry affirmed, his side continue to encourage the development of industrial area, especially outside Java Island. This strategic effort is one of them to accelerate the distribution of national development in order to realize Indonesia centric.

"Because the availability of land outside Java is still relatively wide, the increase in the percentage of industrial area outside Java is higher than in Java," he explained.

By 2017, there are 57 industrial estates in Java. Meanwhile, in Sumatra there are 21 industrial areas, Sulawesi (4 industrial areas) and Kalimantan (5 industrial estates).

Airlangga also said that Kemenperin has facilitated the development of integrated industrial area with supporting facilities to facilitate the investors in developing their business in the country.

"Industrial development is also one of the government's efforts to reduce domestic economic inequality and realize the welfare of society," he said.

Moreover, he added, industrial activity has a wide positive effect, such as an increase in raw material added value, employment absorption, and foreign exchange earnings.

The Minister of Airlangga said that by 2018, it is targeted that the investment value that can be drawn from 13 industrial areas will reach Rp250.7 trillion. The 13 industrial zones (KI), namely KI Morowali, Central Sulawesi, KI or Special Economic Zone (KEK) Sei Mangkei, North Sumatra, KI Bantaeng, South Sulawesi, KI JIIPE Gresik, East Java, KI Kendal, Central Java, and KI Wilmar Serang, Banten.

Furthermore, KI Dumai, Riau, KI Konawe, Southeast Sulawesi, KI / KEK Palu, Central Sulawesi, KI / KEK Bitung, North Sulawesi, KI Ketapang, West Kalimantan, KI / KEK Lhokseumawe, Aceh, and KI Tanjung Buton, Riau.

"The government has provided ease of investing in industrial areas, among others through the provision of fiscal and nonfiscal incentives and the formation of task forces for the provision of gas, electricity, water, human resources, land, spatial, and others," explained Airlangga.

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