Indonesia Seeks Legal Certainty for Industrial Zones

RRI.CO.ID, Jakarta - Legal certainty remains a key focus for the Indonesian government in regulating national industrial zones. The Ministry of Industry is urging unofficial industrial zones to promptly meet legal requirements to ensure investment sustainability.

The Ministry considers the legal status of industrial zones, as established through the Industrial Zone Business Permit (IUKI), essential for creating a safe and competitive business climate. The restructuring effort also targets Industrial Designated Zones (KPI) that have developed organically in several regions.

Deputy Minister of Industry, Faisol Riza, said industrial zones are one of the drivers of the national economy. “We also urge zone managers and local governments to work together to maintain order and comfort within industrial zones,” Faisol said in a statement in Jakarta on Thursday, September 10, 2026, as quoted on the Ministry’s official website.

According to Faisol, the reorganization of these zones must proceed without disrupting existing companies' operations. The government will implement the process gradually, in a measured and transparent manner, involving zone managers and tenants.

The Ministry views the growing industrial activity in KPI zones as economic potential that needs strengthening. “Compliance with the IUKI is expected to provide a clearer governance framework, while also supporting the sustainability of investments and business activities,” Faisol said.

The legal status of an industrial zone is also linked to the quality of infrastructure and industrial services. A well‑managed zone can provide integrated access to logistics, utilities, basic infrastructure, and environmental management, thereby minimizing the risk of production disruptions.

Director General of Industrial Resilience, Regional Planning, and International Access (KPAII), Tri Supondy, said the IUKI serves as a crucial instrument for maintaining service quality in industrial zones. The Ministry, together with local administrations, is mapping the conditions of these zones, identifying gaps in requirements, and developing action plans.

The restructuring covers spatial planning compliance, permitting, infrastructure readiness, and tenant services. These steps are expected to strengthen investment certainty and enhance the competitiveness of Indonesia’s industrial zones.

The Ministry emphasized that the restructuring process will be carried out fairly, proportionally, and transparently. Coordination among the central government, local administrations, and zone managers is essential to providing legal protection and ensuring sustainable production. ***