Businesses Call SME Industrial Zones Inefficient

TEMPO.CO, Jakarta – Industry players disapprove with the government's plan to build six new industrial areas designated for small and medium enterprises (SMEs), calling the plan inefficient.

"Better to focus on the development of 14 industrial zones that had been planned in advance," said Natsir Mansyur, deputy chairman of regional development at the Indonesian Chamber of Commerce and Industry (Kadin).

Natsir suggested the government to fix the zoning of industrial areas first, so that SMEs can be included as one of the special zones in the industrial area. That way, according to Natsir, the government would not have to spend extra money on building new industrial zones and their supporting infrastructure.

"All they have to do is arrange the zoning well and have local governments oversee the process," he said.

Industry Minister Saleh Husin had said that in the next five years the government will build 14 new industrial zones in Papua, North Sulawesi, North Maluku, East Kalimantan, South Kalimantan, North Sumatra and Lampung. In Java, the areas will be built in Gresik and Demak.

Last week, the Industry Ministry's director general of Industrial zoning and development, Imam Haryono, said the government plans to have six industrial zones built specifically for SMEs, based on regional governments' proposals made this year. Each zone will cover a minimum area of 16 hectares.

ROBBY IRFANY