The government has officially established a new holding company named Kawasan Industri Indonesia. The holding was formed to consolidate the management of industrial estates under state-owned enterprises, or SOEs. 

The establishment of the holding is part of an effort to simplify the management structure of SOE industrial estates following a streamlining process carried out by Danantara. 

Head of the SOE Management Agency and Chief Operating Officer (COO) of Danantara Indonesia, Dony Oskaria, said that the management of industrial estates has so far remained scattered and mixed with various other business lines, making it less focused. 

“It is called Kawasan Industri Indonesia. A new holding that specifically manages all of our industrial estates,” Dony said when met at Wisma Danantara on Monday, May 25. 

Dony explained that the government would change the business model for industrial estate management to make it more integrated and professional. With a dedicated holding, the management of SOE industrial estates is expected to become more structured and no longer mixed with other businesses. 

Kawasan Industri Indonesia will manage all industrial estates owned by SOEs. Danantara will also place human resources with specific competencies in industrial estate management. 

Dony hopes that the establishment of the new holding will increase investor interest in investing in Indonesia. 

The establishment of Kawasan Industri Indonesia was decided through a General Meeting of Shareholders (GMS) held on Monday, May 25. 

In addition, Dony also explained that following the GMS, PT Danareksa, which previously served as a transformation and investment holding, would return to its original business of asset management. Its subsidiaries will be released and brought under Danantara’s management. The restructuring process is targeted for completion this year and is expected to begin operating in 2027. 

This article is published in partnership with Katadata 

Original article here