# Indonesian industrial zone regulatory reform efforts

> Live situation record from CLSTR: https://clstr.news/situations/indonesian-industrial-zone-regulatory-reform-efforts
> Updated: 2026-10-07T01:42:15.000Z. Sources: 6. Developments: 2.

Indonesian lawmakers from Commission VII of the House of Representatives (DPR RI) are advocating for reforms to the management and regulation of industrial zones. Lawmakers emphasize that these areas should transition from simple factory clusters into comprehensive economic ecosystems that integrate infrastructure, labor, and local small and medium enterprises (MSMEs).

Key proposals include prioritizing local labor through mandatory hiring and vocational training to bridge competency gaps. Additionally, legislators are calling for the Ministry of Industry to act as the primary regulator to resolve overlapping authorities between central and regional governments. Addressing regulatory complexities regarding land permits and utilities is seen as essential to prevent manufacturers from relocating to competing nations such as Malaysia and Vietnam.

## Timeline

### 2026-10-07: Indonesian lawmakers urge reform of industrial zone management

Indonesian lawmakers are pushing for industrial zones to become integrated business ecosystems and calling for the Ministry of Industry to centralize regulation to prevent factory relocation to neighboring much

2 sources. https://clstr.news/cluster/indonesian-lawmakers-urge-reform-of-industrial-zone-management

### 2026-10-04: Evita Nursanty calls for local labor priority in industrial zone regulations

DPR RI Vice Chair Evita Nursanty urges new industrial zone regulations to prioritize local labor absorption and create economic ecosystems that benefit surrounding communities in Indonesia.

4 sources. https://clstr.news/cluster/evita-nursanty-calls-for-local-labor-priority-in-industrial-zone-regulations

---
Cite as: Indonesian industrial zone regulatory reform efforts. CLSTR, https://clstr.news/situations/indonesian-industrial-zone-regulatory-reform-efforts
