Antara News·Indonesia·Sunday, October 11, 2026 at 06:18 AM UTC

Indonesia eyes strategic project status for more industrial parks

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Ahmad Muzdaffar, Raka Adji

Jakarta (ANTARA) - Industry Minister Muhammad Sarmuji said accelerating the development of industrial parks designated as National Strategic Projects (PSNs) aims to boost downstream processing, strengthen the industrial structure, and promote more balanced investment across the country.

“Developing industrial parks as National Strategic Projects is vital to ensuring that downstream processing and industrial growth progress more effectively. To that end, we will coordinate with relevant stakeholders to discuss the proposals and determine the next steps,” Sarmuji said in a statement confirmed on Sunday.

He said his ministry supports a proposal to designate several industrial estates as PSNs under the 2027 Government Work Plan, noting that their development plays a key role in expanding industrial activity and fostering new economic hubs.

According to Sarmuji, the initiative is expected to create high-quality jobs and increase value added in local economies.

Director General of Resilience, Regionalization, and International Industrial Access at the Ministry of Industry, Tri Supondy, said designating industrial parks as PSNs would strengthen government support for areas that play a strategic role in the national industrial structure.

“Industrial park development must be directed toward building an integrated industrial ecosystem,” Tri stressed.

He added that the PSN proposal process requires discussions across ministries and government institutions to establish project priorities and determine follow-up measures. This process will help ensure that the proposed industrial parks address national industrial development needs and deliver broader economic benefits.

As of the third quarter of 2026, Indonesia had 181 operational industrial parks housing more than 12,000 tenants, including industrial companies. Total realized investment in these industrial parks had reached approximately Rp6,700 trillion (US$374 billion), with the sector employing around 2.3 million people.

In addition to accelerating industrial park development, the Ministry of Industry is strengthening the regulatory framework through deliberations on the Industrial Park Bill, which has been included in the 2026 National Legislation Program (Prolegnas).

The bill is expected to provide legal certainty and improve industrial park governance, thereby boosting competitiveness, attracting investment, and promoting more balanced industrial growth across Indonesia.

It also seeks to address key challenges in industrial park management, including licensing, land use and spatial planning, infrastructure provision, security, and environmental management.

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