The Indonesian government targets an economic growth rate of 8% during the 2025-2029 period, with the industrial sector as the main pillar. Investments in industrial zones are projected to grow at an average rate of 16.75% per year, while job absorption is expected to increase by approximately 3.47 million people annually. Industrial zones are anticipated to drive economic growth, with the target for the non-oil and gas manufacturing sector's GDP reaching 8.58% by 2029.
The development of industrial zones has evolved from the first to the fourth generation. Initially managed by state-owned enterprises (SOEs), they later expanded into the private sector, then transformed into modern industrial zones, and are now entering the era of Industry 4.0. Development policies focus on logistics efficiency, the utilization of natural resources, and the application of high-tech, environmentally friendly, and water-efficient solutions.
The industrialization strategy outlined in the 2025-2029 National Medium-Term Development Plan (RPJMN) includes five key focuses: the development of priority industries, industrial agglomeration in Industrial Zones (KI) and Special Economic Zones (KEK), export acceleration, strengthening small and medium industries (IKM), and the implementation of green industry practices. Currently, Indonesia has 166 industrial zone companies covering a total area of 94,171 hectares, with an occupancy rate of 59.72%. Over the past five years, 50 new industrial zones have been added, representing a 43.10% increase.
With the right policies, industrial zones are expected to become the main driver of national economic growth.