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Indonesia government to develop 3 agro-based industrial zones this year

JAKARTA ( – The Indonesian government plans to develop three agro-based industrial areas, beginning in June this year. The move aims to ensure sustainability of supply for downstream agro-based industries.

Director General for Industrial Zone Development of the Industry Ministry Imam Haryono said two of the industrial zones will be located outside Java, namely in Bitung, North Sulawesi and Palu in Central Sulawesi. The third industrial zone will be located in Kuala Tanjung, North Sumatera.

Haryono told Bisnis Indonesia daily that Palu will be a pure agro-based industrial zone, Bitung will be a combination of Agroindustry and logistic center, while the Kuala Tanjung industrial zone will accommodate palm oil processing industry and alumina.

He said the Industry Ministry will take lead in developing the three agro-based industrial zones, including in preparing land or land clearing and basic infrastructures. The land clearing and construction of basic infrastructures will be funded by the State Budget.

Bitung industrial zone will be developed on 534 hectares of land, Palu 1,500 hectares of land and Kuala Tanjung 1,000 hectares. The Industry Ministry projects that the funds needed to develop Bitung industrial zone will reach Rp2.5 trillion, Palu around Rp12.5 trillion and Kuala Tanjung at Rp4.5 trillion.  (*)

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