Industrial Estate Standards to be Regulated to Increase Competitiveness

Minister of Industry Regulation No. 26 of 2025 will regulate the standards of quality industrial estates, the application of standards is very important to prevent unwanted things such as cesium-137 radiation pollution in Cikande.

Industrial Estate Standards to be Regulated to Increase Competitiveness
Workers finish making shoes at a factory in Tangerang City, Banten, Friday (11/14/2025). Photo: ANTARA FOTO/Putra M. Akbar/bar

To improve the competitiveness of industrial estates, the Ministry of Industry is finalizing Minister of Industry Regulation (Permenperin) Number 26 of 2025 concerning Industrial Estate Standards. The regulation is a derivative of Government Regulation (PP) Number 20 of 2024 concerning Industrial Territory.

Minister of Industry Regulation No. 26 of 2025 will regulate the standards of quality industrial estates, the application of standards is very important to prevent unwanted things such as cesium-137 radiation pollution in Cikande.

Director General of Resilience, Territory and International Industrial Access (KPAII) of the Ministry of Industry Tri Supondy said, the implementation of this industrial estate standard is a form of the government's commitment in creating integrated, modern and environmentally sound industrial estate governance. 

"The industrial estate standard will be a guide for managers to ensure that all aspects of infrastructure, environment, and services run efficiently, transparently, and according to the principles of sustainability," he said when met after a hearing with Commission VII of the House of Representatives, at the Parliament Building, Jakarta (13/11/2025).

Officers in full personal protective equipment (PPE) lift cardboard boxes containing radioactively contaminated shrimp during destruction at PT Prasadha Pamunah Limbah Industri (PPLI), Klapanunggal, Bogor, West Java, Saturday (15/11/2025). ANTARA FOTO/Arif Firmansyah/rwa.

Permen of Industry Number 26 of 2025 contains three main aspects that become indicators of industrial estate standards, namely regional infrastructure (50% weight), environmental management (25% weight), and regional management and services (25% weight). The assessment is carried out by the Industrial Estate Committee, and areas that meet a minimum score of 150 will obtain "accredited" status with a certificate from the Ministry of Industry. This standard is also one of the Business Licenses to Support Business Activities (PB UMKU) Industrial Estates.

Minister of Industry Regulation No. 26 of 2025 will take effect in early 2026 and is expected to boost the productivity of industrial estates and create added value for the Indonesian economy.

Standards for Industrial Estates

Secretary General of the Industrial Estate Association (HKI) Roro Ayu said that to build an industrial estate, the standards that must be met include legality permits such as the Industrial Estate Business License, conformity with spatial planning, and environmental standards that include waste management and emissions. In addition, infrastructure standards, management of supporting facilities, and occupational safety (K3) are also required, as well as compliance with government regulations and reporting obligations. 

Industrial Estate Business License (IUKI), a license granted to develop and manage industrial estates, issued by the Ministry of Industry or related agencies.

Then after obtaining the license, an in-principle approval is required to start the initial phase, including planning and initial construction. Submitted to the Ministry of Industry.

Ensure the suitability of the location with the Regional Spatial Plan (RTRW). Submission through the local government and last but not least, there must be an environmental permit which includes the preparation and approval of an Environmental Impact Assessment (AMDAL). 

"Industrial estates must be built in accordance with the zoning stipulated in the Regional Spatial Plan," he said.

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The minimum land area set depends on the type of industry (for example, a minimum of 50 hectares for a general industrial estate).

Infrastructure must provide supporting facilities such as roads, electricity supply, water, and an efficient and environmentally friendly transportation system. 

The company must provide a safe and healthy working environment in accordance with regulations, environmental management must manage waste and emissions according to applicable standards.

In order for the industrial estate to be ogled by investors, a strategy is needed, namely preparing strong presentation materials, including a clear business plan, market research, business model, financial projections, and long-term vision.

"Promote the potential profitability and evidence of business progress in the industrial area," he said.

Enhance Supervision

Deputy Chairwoman of Commission VII of the House of Representatives Evita Nursanty said that in order to prevent radiation pollution from happening again in industrial areas, increased supervision is needed.

To prevent radiation in industrial areas, measures that can be taken include strict supervision with the installation of radiation detection devices at the entry and exit points of the area.

improved regulations to ensure radioactive equipment is safe and waste handling procedures are in place. "Worker education and regular environmental monitoring are also very important to prevent the spread of radiation and ensure safety," he said.

Evaluate industrial estates that have successfully managed the environment well and replicate the model to other industrial estates throughout Indonesia.

Ensure that local governments have clear guidelines and can direct investments and policies to the location of industrial estates that have been determined in their spatial plans.