Indonesia's Industrial Estate Development Faces Challenges

Spatial Planning Issues Remain Significant Hurdle

The Indonesian Industrial Estate Association (HKI) has identified that spatial planning remains a major obstacle to industrial estate development in Indonesia. According to HKI Chairman Akhmad Ma'ruf Maulana, the inconsistency between spatial plans (RTRW) and sectoral policies often causes delays in investment approvals, particularly regarding the issuance of Spatial Utilization Conformity Approvals (PKKPR).

Infrastructure Constraints Compound Investment Challenges

In addition to spatial planning issues, industrial estates face infrastructure challenges including electricity supply and gas pricing. Many areas still struggle with logistics access, affecting production costs and distribution efficiency. Maulana emphasized that resolving these issues could accelerate investment in 2026, potentially making industrial estates a key driver of economic growth.

Investment Trends and Regional Opportunities

Despite these challenges, 2025 saw significant interest from foreign investors from countries like Japan, Singapore, China, and South Korea. Key sectors attracting investment include battery and electric vehicle manufacturing, modern logistics, renewable energy, data centers, and high-tech manufacturing. Regions such as Kepulauan Riau and parts of Java have emerged as major investment destinations due to improving infrastructure and government support.