Connectivity between industrial areas will boost national growth: Minister Hartarto

Connectivity between industrial areas will boost national growth: Minister Hartarto

Industry Minister Airlangga Hartarto. (ANTARA News/PR)

Our target is that Indonesia`s average GDP per capita can reach US$35 thousand."
Jakarta (ANTARA News) - Industry Minister Airlangga Hartarto opined that connectivity between industrial areas, both within and outside Java Island, will boost the nation`s economic growth.

"If all industrial areas are connected, our economy will become stronger," he noted in a press release on Wednesday.

Hence, the minister expects that the development of industrial area, such as in South Bekasi, West Java, would be emulated in the 100 other areas in the country.

Publicly listed industrial estate developer PT Kawasan Industri Jababeka, located in Cikarang, West Java, has proven able to demonstrate the multiplier effect of industrialization activities that can contribute significantly to the gross domestic product (GDP).

With one million jobs created in the industrial estate, its GDP from the entire area is over US$35 billion per year, or its per capita GDP reaches US$35 thousand.

Hartarto believes such an achievement is in line with the vision of Indonesia`s gold in 2045.

"Our target is that Indonesia`s average GDP per capita can reach US$35 thousand," he added.

Development of the industrial estate is also one of the strategies in implementing the industrial revolution 4.0.

The Making Indonesia 4.0 concept can facilitate the development of industrial zones to encourage economic progress.

Moreover, Indonesia has an industrial corridor in the North of Java as well as industrial areas in Bekasi, Karawang, to Purwakarta.

Furthermore, the corridor of Central Java is in Semarang and Kendal; while the East Java corridor is in Gresik, Lamongan, and Tuban; and outside Java they are in Aceh, Morowali, Bontang, and Bintuni.

Ministry`s Acting Director for General Industrial Development Zone I Gusti Putu Suryawirawan pointed to a spurt in development of industrial areas, especially outside Java Island.

According to Suryawirawan, as many as 10 industrial estates are targeted to be developed until 2019 based on the Nawacita program of President Joko Widodo.

However, currently, 10 new industrial areas are already in operation. In fact, three additional industrial estates will be completed by 2018.

"Three new industrial estates are expected to become operational this year that are the Lhokseumawe industrial area in Aceh, Wilmar industrial estate in Serang, and Tanjung Buton industrial area in Riau. Hence, in 2018, there are 13 areas," he remarked.

In 2019, five other industrial estates are planned to be built.

In order to accelerate the development of industrial estates, Suryawirawan highlighted the need for non-fiscal incentives and ease of investment licensing in the industrial area.

Currently, the Industry Ministry is also focusing on attracting investors to develop the industrial areas.

(Reported by Sella Panduarsa Gareta/Uu.Y013/INE/KR-BSR/A/H-YH)

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