What Industrial Estates Must Meet to Receive Special Fiscal Incentives

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TEMPO.CO, Jakarta - Indonesia's Ministry of Industry plans to require industrial estates to develop a roadmap for the transformation of green industrial estates. "If the industrial estate has a green industry status, it will be given specific fiscal facilities and incentives that will not be given to industrial estates without green industry status," said the Director General of Resilience, Regional and International Industrial Access at the Ministry of Industry, Tri Supondy, in Jakarta on Tuesday, July 28, 2026.  

Tri said that the Ministry of Industry is formulating plans to provide incentives in line with the House of Representatives' discussion of the Industrial Estate Bill.

He also hopes for fiscal incentives for green industrial estates to attract investors. "Incentives such as fiscal taxation, as well as non-fiscal incentives like promotions, facilitation, technology transfer, and so on, we are trying to push for these," he said.

Tri made this statement while attending the inauguration of the Eco-Industrial Park Center (EIP Center). The EIP Center is one of the priority programs to transform ordinary industrial estates into green industrial estates. The program is a collaboration between the Ministry of Industry and UNIDO with funding from the Swiss State Secretariat for Economic Affairs (SECO).

Tri hopes that the EIP Center can facilitate various activities that support the effort to transform green industrial estates. Tri said that the facilities available at the EIP Center include assistance in developing a roadmap for green industrial estates and implementing pilot projects for the application of green industrial estates.

Furthermore, the EIP Center facilitates collaboration between the government, industrial estate managers, industry leaders, and partners in green industrial estate development. Together, they formulate program recommendations and initiatives to accelerate the transformation of green industrial estates.  

Lastly, the EIP Center will organize training programs, workshops, and seminars on environmentally friendly industrial practices, industrial decarbonization, industrial symbiosis, the circular economy, and sustainable development.

Tri said that currently there are five pilot areas that will be transformed into green industrial zones. The areas are Medan, Batam, Bekasi (MM200 and Delta Mas), and Karawang (KIIC). Meanwhile, there is an additional area outside Java that is currently still in the assessment process.

Meanwhile, the UNIDO Representative for Indonesia and Timor Leste, Marco Kamiya, believes that green industrial parks, such as the EIP Center, will accelerate the development of green industries and related policies. "This will be a positive sign for the development of countries like Indonesia," said Marco.

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