The government has revised the list of National Strategic Projects (PSN) to include 44 industrial estates as part of its priority development agenda as stipulated in the Coordinating Minister for Economic Affairs Regulation No. 16/2025, which amends previous Regulation No. 7/2021 on the List of National Strategic Projects.

Chairman of the Indonesian Industrial Estates Association (HKI), Akhmad Ma’ruf Maulana, welcomed the inclusion of 44 industrial areas in the PSN list, describing it as a strong affirmation of the government’s commitment to advancing industrialization, equitable regional development, and accelerating downstream processing.

According to Ma’ruf, PSN designation provides legal certainty, accelerated investment realization, and targeted infrastructure support for industrial development across the country. He added that this strategic move represents a milestone in advancing Indonesia’s economic transformation toward the government’s goal of 8 percent growth in the next five years.

“With PSN status, industrial estates receive cross-ministerial support and significant licensing facilitation. This will expand growth centers beyond Java and strengthen the competitiveness of our national industries,” Ma’ruf said as quoted in a statement on Wednesday, October 22, 2025.

Challenges

While the PSN designation provides stronger regulatory certainty, Ma’ruf noted that several technical challenges in the field still require cross-ministerial coordination and resolution.

First, the need for synchronization of spatial planning and land status, especially for areas awaiting the finalization of Detailed Spatial Plans (RDTR) or those facing land ownership issues.

Second, delays in cross-sector licensing processes, such as environmental impact assessments (AMDAL) and other environmental permits, which remain time-consuming.

Third, infrastructure constraints, including inadequate access roads, limited electricity and industrial gas supply, raw water networks, and weak logistics connectivity to ports and airports.

Fourth, the importance of ensuring fiscal and non-fiscal incentives, particularly for industrial estates outside Java, to attract large-scale investors.

Ma’ruf expressed confidence that with strong regulatory backing and solid interagency coordination, the PSN-designated industrial estates will serve as key drivers of economic growth, regional equity, and value-added exports.