House of Representatives Rushes Discussion of Industrial Zone Draft Bill

Commission VII of the House of Representatives of the Republic of Indonesia (“DPR RI”) is currently discussing the drafting of the Industrial Zone Draft Bill (“Draft Bill”) through the Industrial Competitiveness Working Committee (“Panja”). The Chair of Commission VII of the DPR RI, Saleh Partaonan Daulay, said that the Panja is gathering various inputs from the government, particularly through the Ministry of Industry, as well as from business associations. All of these inputs will form the basis for the drafting of the Academic Paper (“NA”) for the Draft Bill.

“We are currently drafting the academic paper. It is being reviewed and awaiting input,” Saleh Partaonan Daulay told Hukumonline.

Saleh Partaonan Daulay cited the automotive industry as an example of a sector facing competitiveness challenges, as it is considered less competitive than foreign products. He hopes that the Industrial Zone Bill will not only increase the competitiveness of the automotive industry, but also have a positive impact on all national industrial sectors. The Draft Bill is considered to be of high urgency and must be finalized immediately in order to overcome various industrial competitiveness issues, both directly and indirectly.

“Industrial competitiveness is something that is very important to pursue, given the increasingly global nature of industrial competition,” he said.

Furthermore, a number of issues have emerged in the discussion of the Draft Bill, including the problem of overlapping regulations and cross-sector licensing, such as land issues, the environment, and the provision of infrastructure facilities. These points are part of the input that has been received by the Panja for further study.