economy

The Implementation Of PP 20/2024 On Industrial Zoning Will Realize The Spread Of Industries

According to Law Number 3 of 2014 concerning Industry, the direction of national industrial development policy is focused on an Indonesia-centric approach. This approach aims to provide opportunities for regions outside of Java Island to develop the potential of industries in their respective areas.

"Industrial Regionalization has a mission to spread industrial development throughout the territory of the Unitary State of the Republic of Indonesia in order to create a more balanced growth between industries in Java and those outside of Java," said Minister of Industry AgusGumiwangKartasasmita in his speech at the Focus Group Discussion (FGD) on the Implementation of Government Regulation (PP) Number 20 of 2024 concerning Industrial Regionalization, on Tuesday (9/7).

One of the targets to be achieved is the increase in the role of non-oil and gas processing industries outside of Java by 40% of the total value added of the national non-oil and gas processing industry sector, as well as the provision of industrial estate land as a center for industrial activities.

PP Number 20 of 2024 concerning Industrial Regionalization regulates in detail about Industrial Development Zones, Industrial Growth Centers, Industrial Zoning Areas, Industrial Estates, as well as Small and Medium Industrial Centers.

"I invite all parties, both from the central government, local governments, and business actors, to jointly support the implementation of this regulation. Good cooperation among all stakeholders will be the key to success in achieving our common goals. PP No 20 of 2024 is our reference in developing competitive, inclusive, and sustainable industries in the future," added Agus.

Besides accelerating the spread and equal distribution of industries throughout Indonesia, the goal of PP Number 20 of 2024 is also to encourage increased investment contributions in the manufacturing sector outside of Java, to foster new industrial growth centers, to enhance the utilization of industrial resources into high value-added products, to improve the capacity of competent industrial human resources, as well as to facilitate coordination and synergy in industrial development in regions.

With the government's assurance of support in providing infrastructure such as land, transportation, energy, and electricity, it is hoped that investors will be more confident in investing in the industrial sector.

During the FGD on the Implementation of PP 20 of 2024, several key speakers were present, such as the Director of Synchronization of Spatial Utilization at the Ministry of Agrarian and Spatial Planning/National Land Agency (ATR/BPN), the Head of Infrastructure Development Center for Public Works and People's Housing Ministry (PUPR) Region II, the Chairman of the Association of Industrial Estates, and the Director of Marketing at Java Integrated Industrial and Port Estate Industrial Estate. This FGD was moderated by the Dean of the Faculty of Law at the University of Indonesia.

"Hopefully, with the increasing involvement and coordination among the government, business actors, and all relevant stakeholders, the implementation of industrial regional policies can realize advanced, resilient, and competitive industries as part of the economic transformation towards Indonesia Emas 2045," he concluded.

Tag: ATR BPN Industrial Zoning Ministry Of Agrarian PUPR