Airlangga Brings Good News: Government Targets Development Of 27 Industrial Estates Outside Java

Coordinating Minister for the Economy, Airlangga Hartarto. (Photo: Doc. Coordinating Ministry for the Economy)

JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto said the government has targeted the development of 27 industrial areas focused outside Java. His fiancé is for economic equality in the territory of Indonesia.

"The government has targeted the development of industrial estates that are focused outside Java as many as 27 areas and 9 of them are priorities, namely Sei Mangkei, Bintan, then Ketapang, Palu, Teluk Weda, Teluk Bintuni and 18 other areas," he said at the 'National Conference VIII HKI'. ', Thursday, September 9th.

Furthermore, Airlangga said that these areas need to continue to be encouraged and attract investment. Because some of these areas growth is somewhat limited due to the COVID-19 pandemic.

"For this reason, it is necessary to increase competitiveness and attract investment in order to create a conducive and efficient business climate. Not only supported by infrastructure but also the region is expected to have clear markets and adequate logistics access," he said.

In addition, said Airlangga, the government continues to encourage the industrial area to spread evenly throughout the region, not only based on the island of Java.

"Of course we encourage with various incentives and currently these areas, especially outside Java, are based on natural resources and mineral resources," he said.

From the fiscal side, said Airlangga, the government provided assistance in the form of tax holidays, other incentives in the form of reducing income tax, as well as various incentives for exemption from VAT rates, as well as exemption from import duties according to the industrial designation area.

"From the non-fiscal side, the government provides supporting facilities and infrastructure, especially in industries that are categorized as national vital objects and the government provides administrative convenience," he said.

According to Airlangga, industrial estates also play an important role in supporting the industrial sector in order to maintain space suitability and agglomeration.

"The main thing is of course also considering the sustainability of environmental areas so that these areas can become sustainable areas," he said.

"The government also forms various priorities in the national strategic program (PSN). Of course the government hopes that this PSN can also invest and can be completed on time," he continued.

Therefore, said Airlangga, the association of industrial estates is expected to succeed in the national development agenda, especially in the industrial sector and of course it is necessary to maintain cooperation with both the central and regional governments.