Draft Bill on Industrial Estate to Facilitate Immigration Services for TKA and Investors

The Ministry of Industry is promoting the facilitation of immigration services for foreign workers (“TKA”) and investors under the Draft Bill on Industrial Estates (“Draft Bill on Industrial Estate”). Tri Supondy, Director General of Industrial Resilience, Regionalization, and International Industrial Access (Ketahanan, Perwilayahan, dan Akses Industri Internasional – “KPAII”) at the Ministry of Industry, stated that such facilitation forms part of efforts to create a more competitive industrial estate ecosystem and attract global investors.

“The main point is that we want to provide benefits to tenants operating within industrial estates. There should not be a situation where there is no difference between those operating inside and outside the estate,” he stated to Hukumonline.

Tri stated that the facilitation of immigration services for TKA and investors falls within the category of non-fiscal incentives provided by the Government. According to him, such facilitation includes the acceleration of visa and stay permit services. The availability of expedited immigration services is expected to minimize bureaucratic obstacles that have frequently been raised as concerns by investors.

In the draft text of the Draft Bill on Industrial Estates held by Hukumonline, the facilitation of immigration services is regulated under Article 47. The provision of such incentives is intended to encourage investment, increase production, and expand employment opportunities.

Furthermore, the Draft Bill also provides that the granting of such incentives must take into account the type and scale of business activities, the positive impact on the national economy, the State’s fiscal capacity, and consistency with the national development plan.