The Government has issued Regulation No. 24 of 2009 to facilitate the implementation of the provisions of Article 20 of Law No. 5 of 1984 as they relate to the location and development of industrial zones. The primary focus of the Regulation is to establish a National Industrial Zones Team and set out the types of incentives that may be provided as a means to drive industrial zones development and consequently national economic development.
The objectives of the development of industrial zones are simple and include, among others:
-
Control the exploitation of space;
-
Expedite industrial growth in regions;
-
Raise levels of industrial competitiveness;
-
Improve competitiveness as it relates to investment; and
-
Provide certainty in terms of location, infrastructure, and coordination.
The Minister is granted the authority to establish the National Industrial Zones Team. The team will include members from the Central Government, Regional Governments, the Industrial Zones Association, and the Indonesian Chamber of Commerce and Industry. The team is required to report to the Minister at least once every six months.
The primary functions of the team are to provide input on policy development, supervision of development in industrial zones, coordination between the relevant stakeholders, evaluation of developments, and to recommend sale and rental prices for land in industrial zones.
Generally, industrial zones will require a minimum of 50 hectares before being recognized as such. However, where the industries are classified as micro, small, or medium then this requirement is reduced to just 5 hectares.
In terms of incentives, it is expected that the government will be pro-active in providing both customs and tax incentives in order to trigger development and investment.
The Regulation was enacted on 3 March 2009 but does not come into force until one year after its enactment.
The Government has issued Regulation No. 24 of 2009 to facilitate the implementation of the provisions of Article 20 of Law No. 5 of 1984 as they relate to the location and development of industrial zones. The primary focus of the Regulation is to establish a National Industrial Zones Team and set out the types of incentives that may be provided as a means to drive industrial zones development and consequently national economic development.
The objectives of the development of industrial zones are simple and include, among others:
-
Control the exploitation of space;
-
Expedite industrial growth in regions;
-
Raise levels of industrial competitiveness;
-
Improve competitiveness as it relates to investment; and
-
Provide certainty in terms of location, infrastructure, and coordination.
The Minister is granted the authority to establish the National Industrial Zones Team. The team will include members from the Central Government, Regional Governments, the Industrial Zones Association, and the Indonesian Chamber of Commerce and Industry. The team is required to report to the Minister at least once every six months.
The primary functions of the team are to provide input on policy development, supervision of development in industrial zones, coordination between the relevant stakeholders, evaluation of developments, and to recommend sale and rental prices for land in industrial zones.
Generally, industrial zones will require a minimum of 50 hectares before being recognized as such. However, where the industries are classified as micro, small, or medium then this requirement is reduced to just 5 hectares.
In terms of incentives, it is expected that the government will be pro-active in providing both customs and tax incentives in order to trigger development and investment.
The Regulation was enacted on 3 March 2009 but does not come into force until one year after its enactment.
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