Indonesian Industrial Estates Association or Himpunan Kawasan Industri Indonesia (HKI) was established on 20th of June 1988 as the association of companies engaging in the development and management of industrial estates in Indonesia. The founding members have elected Halim Shahab, then the President Director of PT (Persero) JIEP, as the first Chairman, and served for three consecutive terms. In October 2016 the 7th National Congress of the Association has elected Sanny Iskandar, Director of PT Maligi Permata Industrial Estate, as the Chairman for the period of 2016-2020.
The objectives of HKI is to strengthen the roles of industrial estates as a tool for industrialization by encouraging the members to providing well planned and developed industrial land with all necessary infrastructure and supporting services to manufacturing industry. Therefore the industrial estates are acting as a non-fiscal incentive to foreign as well as domestic direct investment in manufacturing sector. Not only by providing ready to build land lots and standard factory buildings, but also by assisting and servicing the process of obtaining permits, land titles, power, water, telephones, wastewater treatment, etc.; and more importantly a continuous management of the estates.
The Government of Indonesia (GoI) has started to develop industrial estates in early 1970-ies as an effort to provide readily available and developed industrial land with adequate infrastructure to support the promotion of foreign and domestic direct investment and to encourage regional development. Some industrial estates have been developed in Jakarta, Surabaya, Cilacap, Medan, Makassar, and Lampung in cooperation with local and provincial governments.
In 1989 the GoI issued Presidential Decree 53/1989 concerning Industrial Estates, which opened the industrial estate business to private companies, and set the legal and technical standard requirements for development and operation of the estates. Later the decree was replaced by the Presidential Decree 41/1996, which sets the guidelines for industrial estates in Indonesia. The decree defines industrial estate as “a center for industrial activities with provisions of infrastructure and supporting facilities, which is developed and operated by a licensed industrial estate company”. The purpose of industrial estate development are to accelerating industrialization in the regions; facilitating industrial activities; directing industrial location; and strengthening environmental friendly industrialization.
Today HKI has 87 company members, in 18 provinces, covering total gross area of about 86,051.01 hectares. There are about 9,950 manufacturing companies operating in the industrial estates. In addition we have to consider also the linkages and multiplier effects created by the manufacturing operations to benefit the national economy and the welfare of our people.
Main attractions of industrial remain that the development is well comprehensively planned to assure the strategic location, accessibility, building ratio, infrastructure and supporting services, provisions of ready to build land lots and standard factory buildings, secured land titles, and continuous maintenance and operation management. Industrial estates mean easy, speedy, and certainty to your investment in Indonesia.