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Indonesia seeks greater use of industrial estates as utilisation reaches 57.2%

The Industry Ministry and industrial estate association HKI are identifying barriers to fuller use of existing capacity.

By Maya Santos

Industrial buildings and access roads in an industrial estate
Photo: CNBC Indonesia

Indonesia’s operating industrial estates have a utilisation rate of 57.2%, Industry Minister Sarmuji said, as the government works with estate operators to identify obstacles to increasing their use.

Sarmuji discussed the issue with Akhmad Ma'ruf Maulana, chairman of Himpunan Kawasan Industri Indonesia (HKI), at the Industry Ministry on 29 October 2026. He said improving the use of existing estates was among the matters covered in their meeting.

The ministry and HKI are jointly identifying what support is needed to raise utilisation, Sarmuji said. The government would then seek ways to address the problems identified, drawing on estate managers’ knowledge of conditions on the ground.

Sarmuji said greater use of the available capacity could support both the growth of industrial estates and the national economy.

Maulana welcomed the discussions and said HKI hoped to continue working with the ministry to strengthen industrial competitiveness. He expressed confidence in the industry's growth prospects and said estate operators wanted a larger role in encouraging investment and expanding economic activity.

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