INDONESIA (ISL News) - The government, through Danantara, has established a state-owned enterprise (BUMN) industrial estate holding company called Kawasan Industri Indonesia (Indonesian Industrial Estate) as part of the restructuring and simplification of BUMN industrial estate management. The legal restructuring process is targeted for completion in 2026, allowing the new holding company to enter the operational phase in 2027.
Supply Chain Indonesia (SCI) Founder and CEO Setijadi assessed that the establishment of the holding company is a strategic step to strengthen the competitiveness of national industrial estates. This holding company should be directed not only at consolidating assets, land, and basic utilities, but also at building an integrated industrial ecosystem with logistics, transportation, warehousing, and supply chain connectivity services.
This need is relevant to the scale of national industrial estates. The Ministry of Industry notes that there are 175 industrial estates with Industrial Estate Business Licenses, covering a total area of 98,235.5 hectares and an occupancy rate of 58.19 percent. These estates accommodate 11,970 companies, employ approximately 2.35 million workers, and attract investment of IDR 6,744.5 trillion.
Prior to the latest restructuring, a number of state-owned industrial estates were within the Danareksa Industrial Park ecosystem, namely PT Kawasan Industri Medan, PT Kawasan Berikat Nusantara, PT Jakarta Industrial Estate Pulogadung, PT Surabaya Industrial Estate Rungkut, PT Kawasan Industri Makassar, PT Kawasan Industri Wijayakusuma, and PT Kawasan Industri Terpadu Batang, with a total land area of 7,855 hectares.
Setijadi explained that the formation of a holding company can provide benefits on three levels. For industrial estate companies in the holding company, consolidation can strengthen economies of scale, standardize governance, integrate investments, optimize assets, and develop new business models that don't rely solely on land sales or leases.
For companies using the area, holding companies can improve service quality, accelerate infrastructure provision, strengthen connectivity, and lower logistics costs through shared facilities. For the national economy, holding companies can strengthen the role of industrial areas as hubs for production, goods consolidation, distribution, exports, and national and global supply chain integration.
Improving logistics efficiency is crucial given its contribution to product prices. According to Bappenas data, in 2023, domestic logistics costs accounted for approximately 14.1 percent of the price of goods, and export logistics costs for approximately 8.98 percent of the price of shipped goods.
Recommendation
The SCI recommends that state-owned industrial estate holding companies develop logistics park master plans for priority areas as part of their regional development strategy. The holding companies need to establish regional logistics service standards and develop shared warehousing facilities, cross-docking, container depots, truck terminals, cold storage, customs services, and integrated distribution.
The development of a logistics park requires integrated multimodal transportation. The area's connections with toll roads, ports, cargo airports, container terminals, truck terminals, dry ports, inland container depots, and barges or Ro-Ro lines need to be designed as a single system. Integration with rail is also crucial to increase freight transport capacity, reduce reliance on long-distance trucks, reduce congestion around the area and ports, and improve delivery time certainty.
The holding company also needs to promote the digitalization of vehicle traffic through a truck appointment system, gate automation, and a control tower. With this approach, the state-owned industrial estate holding company can develop industrial areas as production hubs and national logistics hubs, while providing added value to tenants through efficient logistics costs, guaranteed delivery times, and strengthened export competitiveness.
(ISL News Editorial Team/SCI Public Relations).
