Indonesia Expands Industrial Parks to Attract Investment

RRI.CO.ID, Jakarta - The Indonesian government builds up the development of industrial parks to accelerate downstream industrialization, attract investment, and drive national economic growth. In line with this effort, the Ministry of Industry and PT Danareksa (Persero) have reinforced their partnership in managing strategic industrial parks to accelerate the country’s industrialization.

Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, said industrial parks play a strategic role in creating an efficient and competitive industrial ecosystem. “Industrial parks are not merely locations where manufacturing companies operate. They also serve as drivers of investment, job creation, and key instruments in accelerating Indonesia’s transition toward a more advanced and sustainable industrial sector,” Agus said during a meeting with PT Danareksa, as quoted in a Ministry of Industry press release on Wednesday, June 24, 2026.

Industrial parks have become increasingly important in supporting Indonesia’s economic growth. As of mid-2026, the country has 179 industrial parks covering nearly 100,000 hectares across various regions. These parks host approximately 11,970 tenants, have attracted Rp6,744.58 trillion in realized investment, and employ around 2.35 million workers.

As part of this effort, PT Danareksa manages seven strategic industrial parks across Indonesia, including Batang Integrated Industrial Estate (KITB), Wijayakusuma Industrial Estate (KIW), Medan Industrial Estate (KIM), Nusantara Bonded Zone (KBN), Jakarta Industrial Estate Pulogadung (JIEP), Surabaya Industrial Estate Rungkut (SIER), and Makassar Industrial Estate (KIMA).

Collectively, the seven industrial parks under Danareksa’s holding cover approximately 7,800 hectares with an occupancy rate of around 70 percent. They accommodate roughly 1,200 tenants, have attracted USD10 billion (approximately Rp177.4 trillion) in investment, and provide employment for more than 300,000 people.

The Ministry noted that these figures demonstrate the significant contribution of state-owned industrial parks in strengthening Indonesia’s manufacturing competitiveness.

During the meeting, the Ministry and Danareksa also discussed future development opportunities, including consolidating state-owned industrial parks, transforming them into green industrial parks, and expanding existing parks while developing new ones. The Ministry considers these initiatives essential to accelerating the growth of new economic centers, particularly outside Java.

However, industrial park development continues to face several challenges, including land acquisition and spatial planning, infrastructure, environmental management, licensing procedures, and the need for stronger institutional support and incentives.

The government believes that closer collaboration among ministries, state-owned enterprises, and the private sector will be critical to overcoming these challenges while accelerating the development of competitive and sustainable industrial parks.

“We welcome Danareksa’s commitment to supporting Indonesia’s downstream industrialization and industrial development agenda through industrial park expansion. Going forward, we hope state-owned industrial parks will continue to grow, extend industrial development to more regions, and become engines of more equitable economic growth that delivers tangible benefits to communities,” Agus said.