Industry Ministry, Danareksa team up on industrial estate growth

Jakarta (ANTARA) - Indonesia's Ministry of Industry and state-owned investment holding firm PT Danareksa (Persero) have deepened their cooperation to develop strategic industrial zones aimed at accelerating downstream processing, attracting investment, and driving broader economic growth.

Minister of Industry Agus Gumiwang Kartasasmita stated that these manufacturing hubs play a crucial role in creating an efficient and competitive ecosystem, making them key drivers of Indonesia's industrialization agenda.

"Industrial estates are not only locations where manufacturing companies operate, but also drivers of investment, creators of jobs, and important instruments in accelerating a more advanced and sustainable national industrial transformation," Agus said in a press statement on Wednesday.

The partnership forms part of a broader government strategy to position these zones as regional economic engines. As part of this mandate, PT Danareksa has been assigned to manage several key estates across the archipelago.

As of mid-2026, Indonesia hosted 179 industrial zones nationwide, covering nearly 100,000 hectares.

These sites accommodate around 11,970 tenants, represent a cumulative investment realization of Rp6,744.58 trillion, and employ approximately 2.35 million workers.

Danareksa currently manages seven strategic manufacturing hubs: the Batang Integrated Industrial Estate (KITB), Wijayakusuma Industrial Estate (KIW), Medan Industrial Estate (KIM), Nusantara Bonded Zone (KBN), Jakarta Industrial Estate Pulogadung (JIEP), Surabaya Industrial Estate Rungkut (SIER), and Makassar Industrial Estate (KIMA).

Spanning roughly 7,800 hectares, these seven state-managed properties maintain an average occupancy rate of 70 percent. Together, they host approximately 1,200 tenants, have attracted $10 billion (Rp177.4 trillion) in total investment, and support more than 300,000 jobs.

The ministry noted that these figures underscore the significant contribution of state-owned hubs in strengthening Indonesia's industrial competitiveness while anchoring employment and capital inflows.

During a recent meeting, both parties discussed future development avenues, including consolidating state-owned properties, transforming existing sites into eco-friendly "green" industrial zones, and establishing new manufacturing corridors.

The government views these measures as essential to fostering new economic hubs, particularly outside the main island of Java, ensuring the benefits of industrial development are distributed more evenly across the archipelago.

However, the expansion of these zones faces persistent hurdles, including land-use and spatial planning constraints, infrastructure gaps, environmental concerns, complex licensing processes, and the need for stronger institutional incentives.

Agus emphasized that closer collaboration among the government, state-owned enterprises, and the private sector remains crucial to building competitive and sustainable industrial ecosystems.

"We welcome Danareksa's commitment to supporting the national downstreaming and industrialization agenda," Agus added.

"Going forward, we hope state-owned estates will continue to expand, extend industrial development to more regions, and drive more equitable economic growth that delivers tangible benefits to the public."

Translator: Ahmad Muzdaffar Fauzan, Martha Herlinawati Simanju

Editor: Aditya Eko Sigit Wicaksono

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