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Regional Government Ease Permits for Industry Cities Development

This week interesting News from Regional governments, one of which the regional government of Tangerang regency, Banten supports investors in developing industry cities in the region. Industry city is believed to be able to boost economic growth and regional revenue (Pendapatan Asli Daerah – PAD) of the Tangerang regency which this year is targeted to reach Rp 1 trillion.

Different and wider than the well-known concept of industrial area, industrial city is a city concept that integrates industrial, residential and commercial areas with high concentration of population activities with good connectivity with the surrounding areas. These activities can create massive multiplier effects and high local polarization.

The Tangerang regent, Ahmed Zaki Iskandar, explained that the development of industry cities will contribute to the growth of various sectors in the region, including his regency’s socio-economic and local resources potentials.

"Yes, it is the suitable concept, an integrated city can improve people's welfare, provide employment and encourage growth of Tangerang’s PAD,“ said Ahmed Zaki to reporters.

Central Bureau of Statistics of Banten recorded, the is still inequality between the level of welfare of people between regions. Up to 2015, the highest per capita income was recorded in Kota Cilegon at Rp 189.18 million per capita per year. This is driven by high industrial concentration in the region. While other areas are well below that figure: Tangerang City (Rp 61.60 million), Serang Regency (Rp 38.19 million), South Tangerang City (Rp 36.31 million), Serang City (Rp 33.99 million), Tangerang Regency (Rp 30.27 Million), Pandeglang Regency (Rp 16.97 million), and Lebak Regency (Rp 16.32 million). According to Ahmed Zaki, the presence of a major investment can encourage massive development to provide other benefits. Several of these benefits are the increase in the value of tax and land sale objects, the growth of regional economic center, the establishment of factories, the emergence of trade centers, and markets so that people can work within the region without having to look for jobs in Jakarta.

To develop an integrated industry city, he said, it takes a lot of investment both from domestic and foreign investment specially to build infrastructure and attracting anchor investors. The benefits of such investment will generate income that can be further utilized to develop the region.

"We have built roads to open up new areas that can be used as investment destinations for housing, industry, and other developments," Ahmed Zaki said. Tangerang has been attracting both local and global investors. Several of the domestic investors investing in Tangerang Regency are Sinarmas Land, PT Lippo Karawaci Tbk, PT Alam Sutera Realty, Ciputra Group, PT Summarecon Agung Tbk, and PT Jaya Real Property Tbk. So far, they have developed residential and commercial areas.

As for one of the global investor who are focusing in developing integrated new industry city in Tangerang Regency is CFLD Indonesia as part of Singapore-based CFLD International which is a global company focused on developing new industrial cities by partnering with various global and local strategic partners. Ahmed Zaki instilled that he will support investors who partner with local entrepreneurs. He claimed to have facilitated such acceleration of licensing to keep the development process going.

"We provide facilities such as acceleration of the licensing process as in accordance with the President's instruction of course by still adhering to the prevailing rules and regulations. The most important are all the procedures and requirements are completed. These steps taken are clear and appropriate procedures, "said Ahmed Zaki.

Previously, President Joko Widodo during his keynote speech at the inauguration of Mitsubishi Motors Krama Yudha Indonesia's latest factory (MMKI), said industry players are encouraged to involve local talents and entrepreneurs. "Do not hesitate to involve local talents and entrepreneurs to work on the latest innovations," said President Joko Widodo in GIIC industrial area, Cikarang, Bekasi regency, last April.

The central government through the Investment Coordinating Board (BKPM) ensures that it will support investors who are committed in building integrated connectivity and infrastructure and industry cities in Indonesia. BKPM’s Investment Coordinating Board Implementation Deputy, Azhar Lubis, previously said the presence of investors will encourage investment which one of Indonesia’s current economic growth pillars.