Coordinating Minister Airlangga Prepares Several Assistance Schemes So That Industrial Estates Can Be More Developed

Illustration. (Photo: Doc. Antara)

JAKARTA - The government has targeted the development of 27 industrial areas focused outside Java this year. Nine of them are priority areas. However, during the COVID-19 pandemic, many industrial areas were affected.

Therefore, the government encourages the industrial area to develop. Coordinating Minister for the Economy Airlangga Hartarto said that the government needed to encourage these industrial areas to develop in order to be able to attract investment into them.

"Of course the government sees that these areas need to be encouraged and need to continue to attract investment because some of these areas due to the COVID-19 pandemic have somewhat limited growth," he said at the 'Munas VIII HKI' event, Thursday, September 9.

Airlangga said that one of the efforts that will be encouraged for the development of industrial estates is to provide various incentives. From the fiscal side, the government provides incentives such as tax holidays, reduction of income tax, as well as various incentives for exempting VAT rates, as well as exempting import duties according to the industrial designation area.

To be able to attract investment into industrial areas, said Airlangga, it is necessary to increase competitiveness and attract investment. According to him, this is for the sake of creating 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 explained.

Therefore, said Airlangga, the government also provides non-fiscal assistance to encourage industrial estates to continue to develop. For non-fiscal assistance, the government will provide supporting facilities and infrastructure, especially for industries categorized as national vital object industries.

Not only that, said Airlangga, the government will also provide administrative convenience for industrial area managers. This is because this industrial area certainly plays an important role in supporting infrastructure growth in the industrial sector, in order to maintain the suitability of space and industrial agglomeration.

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

Airlangga said, the government also established 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 said.

For your information, in the past year, the government has established 27 priority industrial areas as stated in the National Medium-Term Development Plan (RPJMN) 2020 to 2024. The industrial areas are spread from Java to Papua.

The priority industrial areas include the Sei Mangkei industrial area in Simalungun, North Sumatra; Galang Batang Industrial Estate in Bintan; Palu Industrial Estate in Palu, Central Sulawesi; and the Bintuni Industrial Estate in Bintuni Bay, West Papua.

Then those included in the priority industrial areas are the Bangkalan Industrial Estate in Madura, East Java; Ketapang Industrial Estate in Ketapang, West Kalimantan; Weda Bay Industrial Estate in Central Halmahera, North Maluku; Bintan Aerospace Industry Industrial Estate in Bintan; and Galang Batang Industrial Estate in Bintan, Riau Islands.