Draft Industrial Estate Bill to Regulate Synergies Between Large and Small-Scales Industries

Commission VII of Indonesia’s House of Representatives (“DPR”) is currently reviewing the Draft Industrial Estate Bill (“Draft Bill”). Saleh Partaonan Daulay, Chairman of Commission VII of the DPR, stated that the draft bill will regulate synergies between large-scale and small-scale industries within an industrial estate.

According to Saleh, Parliament intends to ensure that development within industrial estates benefits not only large-scale industries, but also small-scale industries. “We want small-scale industries to complement and support large industries as well,” he told Hukumonline.

Saleh further explained that the working committee will formulate provisions enabling small-scale industries to collaborate with large industries within an integrated industrial estate. By way of illustration, a large machinery manufacturer could cooperate with smaller factories to supply components required for the production of larger machinery. Both industries could be established within the same industrial estate, thereby creating a mutually beneficial partnership.

“Through such collaboration, members of the public who only have sufficient capital to establish small-scale industries will nevertheless have the opportunity to participate in the industrial estate,” Saleh stated.