Indonesia urges regions to turn unused public land into industrial parks
The investment ministry offered licensing support for sites of at least 50 hectares and said parks could serve sectors beyond manufacturing.
Indonesia’s regional governments should identify unused publicly owned sites measuring at least 50 hectares for industrial park development, Deputy Minister of Investment and Downstreaming Todotua Pasaribu said in Medan. He said the ministry would help with licensing to support investment.
Pasaribu made the proposal at the inauguration of the North Sumatra Investment Desk. He said industrial parks could simplify investment approvals and help prevent social problems in surrounding communities.
The ministry has made Direct Construction Investment facilities available at 36 of the country’s 181 industrial parks, he said. The scheme authorises park managers to provide licensing services on behalf of the central government.
Pasaribu said parks need not focus solely on manufacturing. Regional authorities could develop them around local strengths, including trade, healthcare and tourism.
Ministry figures put North Sumatra’s realised investment at Rp37 trillion for January–September 2026, ranking it 15th among Indonesia’s provinces. Domestic direct investment accounted for around Rp22 trillion, while foreign direct investment stood at Rp14.9 trillion.
The province has three industrial parks, alongside the Sei Mangkei Special Economic Zone in Simalungun District, supporting manufacturing and downstream processing. The ministry also identified tourism, natural resources, ports and connectivity as areas with further investment potential.
