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Competitiveness of Industrial Area Determined by Infrastructure

by Sebastianus Epifany Thursday, August 3, 2017 - 15:49

JAKARTA - Integrated infrastructure, especially energy, such as gas and electricity and competitive land prices, will determine the competitiveness of industrial area, especially in competing with neighbouring countries in the ASEAN region. This was stated by the Minister of Industry of the Republic of Indonesia Airlangga Hartarto.

Airlangga Hartarto also explained that the development of industrial area requires increased connectivity between infrastructures such as roads, ports and railways. To work on this, a strategic partnership between central and regional governments with the management of the industrial area and related stakeholders is required.

"The advantage of the industrial area depends on infrastructure and price, because we compete with industrial areas in other countries, especially in ASEAN," said Airlangga Hartarto as reported from (8/3/2017).

He also explained that the strengthening of the competitiveness of industrial area is also driven by the increase of manpower capacity. Therefore, the government facilitates the development of polytechnics and community academy in industrial areas, especially outside Java.

He explained that the development of industrial estate is one of the government's efforts to reduce domestic economic imbalances to realize Indonesia Centris. Based on the records, the total industrial area which is continuously driven by construction are 27 industrial estates, whereas eight industrial area has started to operate, nine industrial area is still construction phase, and the remaining 10 industrial areas are in the planning completion phase.

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