REPUBLIKA.CO.ID, JAKARTA -- The government supports the development of integrated industrial zones to serve as a logistics solution for companies, according to Chief of the Capital Investment Coordinating Board (BKPM) Franky Sibarani.
The BKPM chief noted in a press statement that the support was important as industrial zones were the drivers of regional economies and aimed at improving the welfare of the people.
"The development of industrial zones as a logistics solution will have a positive impact on Indonesia by increasing its competitive edge, which will help to attract investment," Franky stated during his visit to the Java Integrated Industrial and Port Estate (JIIPE) in Gresik, East Timor, on Tuesday.
The industrial zones can be turned into a logistics solution by preparing supporting infrastructure within the zones, such as the development of deep sea ports, power stations, and railway tracks.
Franky affirmed that competition in global investment was largely determined by the availability of industrial zones as an investment solution in a region.
"Several investors who came to the BKPM have begun drawing comparisons between the industrial zones in Indonesia and the other neighboring countries," he pointed out.
The BKPM continues to actively mediate and facilitate consultations among companies in the industrial regions.
The board has also prepared a permit service program for industrial zones.
"With the development of industrial zones, investments will flow in and will help to increase employment and advance the economy around the zones. The local people around the zones, including Islamic boarding schools, could play an active role in the development of the local economy," stated Franky.
As part of his support, President Joko Widodo (Jokowi) will visit the JIIPE, which is located in Manyar, Gresik District, East Java, on Wednesday.
President Jokowi will witness the launch of a job creation program through an investment cooperation with an Islamic Boarding School (Pondok Pesantren), which is a joint venture between state-owned port operator Pelindo III and PT Aneka Kimia Corporindo.
The JIIPE is one of the integrated industrial zone models that has won full support from the government but does not burden the state budget.
The BKPM data revealed that investment in the development of integrated industrial zones, which has been included as a priority sector in tourism and the region for the January-September 2015 period, was recorded at Rp181.2 trillion, up 127.3 percent compared to Rp79.8 trillion noted in the corresponding period last year.
The total investment interest value in the tourism and regional sector was recorded at US$11 billion during the period between October 22, 2014, and October 2, 2015.
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