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| Over 90% of Industrial Zone Land Remains Unused: Huge Investment Opportunities Await. |
Jakarta — Did you know that most of Indonesia’s industrial zone land outlined in spatial planning documents is still sitting unused? According to the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), more than 90% of designated industrial land hasn't been utilized yet. This opens up a massive window for investment and could significantly boost the national economy.
This was highlighted by the Director General of Spatial Planning, Suyus Windayana, during the National Dialogue at the IX Congress of the Indonesian Industrial Estate Association (HKI) held in Kuningan, Jakarta, on Thursday, June 19, 2025.
“The industrial areas are already mapped out in our spatial plans, but only a small portion is actually in use. That means there’s still a huge investment opportunity here,” said Suyus.
Concrete Examples: Land Is There, But Not Yet Active
Let’s break it down:
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In Sumatra, about 185,412 hectares have been allocated for industrial zones. But only 13,000 hectares—just 7%—have been used so far.
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In Java, of the 350,539 hectares designated, only 34,000 hectares (about 9.75%) have been utilized.
Even though the land is already included in the official spatial plans, the real challenge lies in execution.
The Real Challenges
According to Suyus, the main issues include delays in getting Land Use Suitability (KKPR) permits, incomplete Detailed Spatial Plans (RDTR), and difficulties with land acquisition.
Another big hurdle? The integration of RDTR into the Online Single Submission (OSS) system. From the government's target of 2,000 RDTRs to be synced with OSS, as of mid-2025, only 367 RDTRs have been successfully integrated. The rest are still in the process of being synchronized and digitized.
Government Action: Turning Plans into Progress
To address this, the ATR/BPN Ministry is actively supporting regional governments in developing their RDTRs. Support includes not just funding but also technical guidance to help local administrations move faster and more accurately.
This support is critical because if all the RDTRs can be properly integrated and land use permits streamlined, Indonesia will become far more attractive to investors. This could translate to stronger economic growth, more job creation, and regional development across the country.
There's a massive amount of industrial land in Indonesia just waiting to be developed. The land is there, the plans are in place—it’s all about unlocking the potential. Once challenges like permits and system integration are resolved, the door to investment and economic advancement will swing wide open.
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