Designing Industrial Activity to Foster New Economic Hubs

Industrial sector activities are currently still focused in Java. However, Java as a center of national industrial activity is faced with the issue of declining environmental support capacity. On the other hand, distribution of economic growth centers outside of Java is still uneven and not optimal, due to lack of connectivity infrastructure as well as lack of human resource, and lack of urban services support to ensure quality of life. Effectiveness of policies remain a challenge for business certainty in regions.

Irrespective of current prevailing conditions, development of growth centers through development of industrial zones must be continued to increase comparative advantage of natural resources and promote economic diversity. More focus needs to be given to investment partnership models, provision of infrastructure, interregional connectivity, provision of skilled human resources, and funding. Stages of development can begin by organizing micro, small, and medium business actors in small and medium industrial centers. This effort is expected to support the development of activities and capacity of industry gradually according to potential and capacity of each region. The result of these various strategies is expected to support the role of industry in redistributing the progress of development in various regions as well as increasing the overall national competitiveness.


Growth centers, policy effectiveness, industrial zones, economic diversification, investment partnership, provision of infrastructure, interregional connectivity, provision of skilled human resource, funding of industrial zones, development of MSE centers, redistribution of development progress in regions.

Sub-theme exploration

  1. Best practices to develop new growth centers based on industrial activity
  2. Designing policy ecosystem needed to support business certainty in new growth centers
  3. Designing industrial zone development models as part of economic diversification
  4. Designing investment models and funding of industrial zones
  5. Best practices in the provision and management schemes of industrial zone amenities (infrastructure and interconnectivity)
  6. Strategies for provision of skilled human resource outside of Java
  7. Strategies for developing MSE centers as a stepping stone towards industrialization
  8. Strategy focus for developing industrial activities in specific regions (Sumatra, Kalimantan, Sulawesi, Maluku, Papua and Nusa Tenggara)