Understanding of Industrial Estate, Purpose and Facilities

For a country, industry has a vital and strategic role for economic improvement. The existence of industry can be a driving force for the people’s economy which in turn drives the achievement of national goals in the form of community welfare.

Therefore, it is very important to manage the industry so that it can produce the maximum positive impact for the community. One of the things done in maximizing the role of this industry is through the establishment of industrial estates. What is an industrial area? Next we will discuss about the definition of industrial estates, the objectives and existing facilities in industrial estates.

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Definition of Industrial Estate

It should be emphasized that the industry is different from the industrial estate. Industrial zones are formed in the context of efforts to accelerate industrial growth to meet the needs of domestic industrial goods and for export. In Indonesia, industrial estates are deemed necessary to be organized and regulated in separate laws.

The definition of industrial estate according to Presidential Decree No. 53 of 1989 concerning Industrial Estate is an area where concentrations of processing industry activities are equipped with infrastructure, facilities and other supporting facilities provided and managed by an industrial estate company.

The industrial estate company is a legal entity company that was established based on Indonesian law and is domiciled in the territory of Indonesia which manages the industrial estate.

The existence of industrial estates and industrial estate companies is regulated through special regulations so that the industry can run productively and efficiently.

Destination Industrial Estate

The establishment of industrial estates has several specific objectives, such as:

  • In an effort to accelerate industrial growth
  • In order to provide convenience for industrial activities
  • To encourage industrial activities to be located in industrial estates
  • To provide industrial land facilities that are environmentally sound.

Industrial Estate Facilities

In an industrial area, the companies in it are entitled to enjoy some of the facilities available in it. This facility is specifically provided to encourage industrial activities to operate more optimally, productively and efficiently.

Industrial estate facilities are provided by industrial estate companies in their environment. The facilities that must exist in the industrial area in general include:

  • Availability of industrial land or standard buildings to be submitted or sold
  • Availability of warehousing areas
  • The existence of a terminal or container storage
  • There is an adequate security system
  • There is a health service center
  • There are adequate environmental road facilities
  • There is a large parking area
  • The availability of sufficient electricity network
  • Clean water network
  • Telephone and telex networks exist
  • The existence of a dumpitor integrated wastewater treatment facility.

Industrial Estate Company

In Indonesia, industrial estate companies can be managed or in the form of:

  • State-Owned Enterprises (BUMN)
  • Regionally Owned Enterprises (BUMD)
  • Cooperative
  • National private company
  • Companies in the framework of foreign investment
  • Joint ventures between existing business entities

Industrial Estate in Indonesia

In Indonesia, there are already several industrial estates that are running. Examples of industrial estates in Indonesia include:

  • Batam Island industrial area, located in Riau Province and managed by the Batam Authority.
  • Pulo Gadung industrial area, located in Jakarta, and managed by PT JIEP.
  • Rungkut industrial area, located in Surabaya, East Java, and managed by PT SIER.
  • Tugu industrial estate, located in Semarang, Central Java, and managed by PT Tugu Indah Abadi.
  • Terboyo industrial area, located in Semarang, Central Java, and managed by PT Terboyo Industrial Park Semarang.
  • Guna Mekar Industrial Park, located in Semarang, Central Java, and managed by PT Guna Mekar Industri.
  • Cilacap industrial area, located in Cilacap, Central Java, and managed by PT Persero Kawasan Industri Cilacap.

Impact of Industrial Estates

The existence of an industrial estate is indeed important for improving a country’s economy. However, its existence must also be regulated and managed in such a way that it does not cause negative impacts.

The development of industrial estates must not interfere with agricultural productivity, natural resources and cultural heritage. That is, industrial estates may not be established in agricultural land areas thereby reducing the area of ​​productive agricultural land.

Industrial estates must also not be established on land that has the primary function of protecting natural resources and cultural heritage. Therefore, in establishing and managing industrial estates, they must be careful and obedient to the applicable legal rules.

It should be noted that in the development of industrial estates, not only positive impacts are generated, but they also have the potential to cause negative impacts.

The positive impacts of the industrial estate include:

  • Can improve the economic level of the surrounding population
  • Can encourage increased production of industrial goods
  • Increase exports

While the negative impacts that may arise from the industrial estate include:

  • Industrial pollution and pollution in the form of industrial waste
  • Reduced green land

To anticipate the negative effects of industrial areas, good waste management is needed. So, don’t let pollution and waste be dangerous for the environment and the surrounding population.

In addition, tree planting and greening efforts are also needed in order to reduce air pollution from industrial fumes.

Regional Center for Industrial Growth

Indonesia has a Center for Industrial Growth (WPPI). WPPI is a landscape that consists of a number of regions with potential as a place for growth and development of industrial activities as well as having economic links that are dynamic because they have the support of a good transportation system.

In this WPPI, one of them is a bonded zone . So, bonded zones are part of WPPI. In addition to the bonded zone, WPPI also has an industrial zone. This industrial zone is an area within WPPI with spatial binding or spatial economic activity in general, and industry activities in particular, within a certain distance limit.

In this case, industrial estates are certain complexes for various basic industries or key industries that play a role in encouraging the growth of industrial zones. Other small industrial activities, can grow inside and outside the industrial area.

Indonesia itself has eight Industrial Growth Center Areas, which include:

  • WPPI northern Sumatra, which is based on the potential of natural resources.
  • WPPI southern Sumatra (including Bnaten), which is based on the economic potential of coal, tin, petroleum, and industrial minerals such as kaolin and lime.
  • WPPI Java and Bali (excluding Banten), which is based on good infrastructure, including skilled labor, energy sources, and advanced agricultural systems.
  • WPPI East Kalimantan, which is based on gas and coal potential.
  • WPPI Sulawesi, which is based on the potential of agriculture, fisheries, asphalt, nickel, lime and wood.
  • WPPI Batam and West Kalimantan, which are based on the potential of natural resources, culture, and skilled small industrial workers.
  • WPPI northern eastern Indonesia, which is based on the potential of marine, mineral and forest products.

So, that’s the material about the industrial estate, both the purpose, facilities, and other information related to the industrial estate. May be useful.

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