Antara News·Indonesia·Monday, November 9, 2026 at 12:27 PM UTC

Ministry urges regions to tap idle land to develop industrial parks

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Shofi Ayudiana, Raka Adji

Medan, North Sumatra (ANTARA) - Deputy Minister of Investment and Downstreaming Todotua Pasaribu has urged regional governments to utilize idle government-owned land to develop industrial parks and attract investment.

Speaking at the inauguration of the North Sumatra Investment Desk in Medan on Monday, Pasaribu suggested that regional governments identify idle plots of at least 50 hectares to develop industrial parks.

He assured that the Ministry of Investment and Downstreaming will assist with the licensing process for these areas.

“Rather than letting local government land lie idle, open up at least 50 hectares. We will take care of all the area licensing on our end,” he said.

The deputy minister noted that developing industrial parks serves as a strategic move to streamline investment licensing while preempting social issues within local communities.

He added that the ministry has provided Direct Construction Investment facilities across 36 of Indonesia's 181 industrial parks. Under this scheme, industrial park managers are granted authority to handle licensing services directly as an extension of the central government.

Pasaribu noted that industrial park development is not limited to manufacturing but can be tailored to each region's core strengths, such as trade, healthcare, and tourism.

According to data from the ministry, investment realization in North Sumatra reached Rp37 trillion (around US$2.04 billion) between January and September 2026, placing the province 15th nationally.

This total comprises domestic direct investment of around Rp22 trillion and foreign direct investment amounting to Rp14.9 trillion.

North Sumatra currently has three industrial parks and the Sei Mangkei Special Economic Zone (SEZ) in Simalungun District to support manufacturing development and downstream processing.

The ministry also notes that investment potential in the province remains wide open, particularly across tourism, natural resources, ports, and connectivity.

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