National Vital Object Status in the Draft Bill on Industrial Estates

The Ministry of Industry (“Kemenperin”) is currently advocating for strengthened security provisions in the Draft Bill (“Draft Bill”) on Industrial Estates, which is being deliberated with the Indonesia’s House of Representatives (“DPR RI”). One of the key proposals is the designation of industrial estates as National Vital Objects (Objek Vital Nasional - “Obvitnas”) in order to provide stronger security certainty for business actors and investors.

Tri Supondy, Director General of Industrial Resilience, Regionalization, and International Industrial Access (Ketahanan, Perwilayahan, dan Akses Industri Internasional - “KPAII”), stated that the provision is intended to ensure that all industrial estates have adequate security standards. “This is primarily to ensure that all industrial estates meet security standards, so such standards are necessary. This will serve as an added value for estate operators in attracting new investors,” he said.

Tri emphasized that security aspects are not limited to addressing physical disturbances, but also encompass the implementation of standardized and professionally managed security systems. According to him, such standards will serve as added value that provides certainty for investors.

Based on the draft of the Draft Bill on Industrial Estates obtained by Hukumonline, provisions on security are regulated under Chapter VIII. Article 39 requires each industrial estate company to ensure security through the provision of an integrated security system, access control, and internal security personnel. Meanwhile, Article 41 mandates the central government to designate strategic industrial estates as Obvitnas within the industrial sector, which are required to implement standard operating procedures in their management.