Indonesian lawmakers urge reform of industrial zone management

Members of the Indonesian House of Representatives (DPR RI) Commission VII are advocating for significant reforms regarding the management and impact of industrial zones. During a working visit to the Mitra Karawang Industrial Estate in West Java, lawmakers emphasized the need for industrial areas to function as comprehensive business ecosystems rather than mere clusters of factories.

Lawmaker Hendry Munief stated that these zones must integrate infrastructure, labor, and local small and medium enterprises (MSMEs) to ensure economic benefits extend to surrounding communities. He also called for a shift in Corporate Social Responsibility (CSR) approaches, moving from consumptive aid toward skill development and empowerment.

Simultaneously, lawmaker Yoyok Riyo Sudibyo urged the Ministry of Industry to act as the primary regulator to resolve overlapping authorities between central, provincial, and district governments. He noted that issues such as land permit complexities, utility uncertainties, and infrastructure problems could drive manufacturers to relocate to competing nations like Malaysia and Vietnam if regulatory chaos is not addressed.