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Indonesia urges industrial estates to boost competitiveness

Jakarta (ANTARA) – Industry Minister Agus Gumiwang Kartasasmita said global investment competition has shifted from competition among countries to competition among individual industrial estates, making the competitiveness of industrial estates a key factor for attracting investment.According to him, global companies planning to build factories no longer compare Indonesia with other countries as a whole but instead compare specific industrial estates in Indonesia with those in competing countries.”What they compare is not Indonesia against Vietnam. What they compare is an industrial estate in Central Java against an industrial estate in Binh Duong,” Agus said while opening the National Working Meeting of the Industrial Estate Association (HKI) here on Thursday.Therefore, he said, decisions made by industrial estate managers will play a crucial role in strengthening the competitiveness of Indonesia's manufacturing sector.Amid global trade fragmentation, supply chain disruptions, and geopolitical tensions, Kartasasmita said he believes Indonesia has a major opportunity to strengthen its position as one of the world's manufacturing bases.”Companies relocating their production from one country to another are not waiting for Indonesia. They are comparing us with Vietnam, Thailand, India, and Mexico, and they are making those decisions in months, not years,” he said.According to him, industrial estates can no longer serve merely as providers of land or utilities but must evolve into industrial ecosystems capable of accelerating investment realization.He stressed that investors prioritize speed and business certainty, expecting to convert from commitments into production without unnecessary delay.Therefore, he urged industrial estates to become dynamic investment enablers by integrating supply chains, innovation hubs, workforce development, and green industry transformation.He also identified three factors that will determine the future competitiveness of industrial estates, namely fast and reliable licensing, adequate infrastructure, and sufficient energy supplies, particularly renewable sources.