The unprecedented industrial development of Indonesia is driving greater demand for industrial land. The development of industrial estates aims to control the use of space, increase efforts of environmentally sound industrial development and accelerate the growth of industry, improves the competitiveness of industry and investment, and provide certainty in the planning and construction of infrastructure. To support the objectives, the issuance of Law No. 3 in 2014 on Industry encourages manufacturers to locate their plants within the available industrial estate.
Currently, Indonesian industrial estates also move on to more integrated logistic planning and supporting services orientation. The regional government, who also acts as management of industrial estates itself, expands the opportunity to develop township services (housing accommodation, restaurants, recreational parks, clinics/hospital, schools, and training centres). The coming Asean Economic Community (AEC) 2015 has raised the demand for industrial estates not only being commodity based but also competency based economy.
In May 2015, the member of Indonesia Industrial Estate Association (HKI) consists of 70 industrial estates occupying 45,807.73 hectares in 13 provinces in Indonesia. There are 8,517 industrial manufacturing facilities for companies from Japan, Korea, Singapore, United Kingdom, Germany, United States, Australia, Taiwan, China and Malaysia. This facilities support a wide range of industries such as electronics, automotive, food and beverage, chemical, steel, pharmaceutical, footwear, and wood processing.