Antara News·Indonesia·Thursday, October 8, 2026 at 11:18 AM UTC

Indonesia to merge 23 state-owned industrial estates under Danantara

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Arnidhya Nur Zhafira, Yashinta Difa

..In the future, land will no longer be a source of income; instead, revenue will come from the facilities we provide,

Jakarta (ANTARA) - Sovereign investment agency Daya Anagata Nusantara (Danantara) announced plans to merge 23 state-owned industrial estates under a single entity, PT Kawasan Industri Indonesia, to streamline operations and attract foreign investment.

Speaking in Jakarta on Thursday, Danantara Chief Operating Officer (COO) Dony Oskaria said the consolidation is scheduled to be officially announced on November 5.

"We want to accelerate investment into Indonesia. We are also reviewing the business model of our industrial estates," said Dony, who also serves as Head of the State-Owned Enterprises Agency (BP BUMN).

Dony explained that the restructuring involves both organizational consolidation and a fundamental shift in the revenue model. Under the new approach, industrial estates will move away from relying primarily on land sales and instead focus on recurring revenue from integrated utilities, facilities, and investor support services.

"Not only is there consolidation, but we are also reviewing the business model. In the future, land will no longer be a source of income; instead, revenue will come from the facilities we provide," Dony said.

"Instead, income will come from the facilities and services we provide. That is why the government is preparing integrated industrial estates," he added.

The merged entity will manage a combined land area of 35,000 hectares, positioning Indonesia to become the largest industrial estate manager in Southeast Asia. To enhance competitiveness against neighboring countries, PT Kawasan Industri Indonesia will focus on integrated infrastructure development, centralized marketing, and end-to-end investor support.

"We are encouraging them to enter as much as possible so that they can be more competitive and create more job opportunities for the Indonesian people," Dony said.

The initiative also reshapes the mandate of state asset manager PT Danareksa. Having previously served as the holding company for various industrial estates, Danareksa will return to its role as a pure asset manager once the industrial properties are fully transferred to the new holding company.

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