Indonesia establishes new holding company for state-owned industrial estates

Indonesia has established a new state-owned holding company, Kawasan Industri Indonesia, to oversee and consolidate the management of industrial estates owned by state enterprises.

The new entity is part of a broader restructuring program aimed at improving coordination and investment management in the industrial estate sector, according to Danantara Indonesia Chief Operating Officer Dony Oskaria.

“Kawasan Industri Indonesia is a new holding company dedicated specifically to managing all of our industrial estates and is expected to become one of the key drivers for attracting investment,” Dony said in Jakarta on Monday.

He said industrial estate operations had previously been combined with unrelated business activities, prompting the government to establish a dedicated management structure focused solely on industrial estate development.

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Under the restructuring plan, all industrial estates owned by state enterprises will be managed under Kawasan Industri Indonesia through a more centralized and structured approach.

Previously, the industrial estate businesses were managed within the ecosystem of PT Danareksa (Persero). Danareksa had also announced plans in 2024 to modernize industrial estate operations and reduce reliance on land sales as the main source of revenue.

Under the latest restructuring, Danareksa will refocus on asset management activities, while industrial estate operations will be transferred to the new holding company.

Dony said the legal restructuring process is expected to be completed by 2026, with Kawasan Industri Indonesia targeted to begin full operations in 2027.

Editing by Alexander Ginting