The Daya Anagata Nusantara Investment Management Agency (Danantara) plans to consolidate 23 industrial estate companies into a single entity. The merged company will become the largest industrial estate manager in Southeast Asia. 

Danantara Chief Operating Officer (COO) Dony Oskaria said the agency plans to change the business model of its industrial estates, with land no longer serving as a source of revenue once the consolidation is completed. 

“We are reviewing the business model of our industrial estates. On 5 November, the merger of our 23 industrial estate companies into a single industrial estate company will be announced,” Dony told reporters at the Kempinski Hotel in Jakarta on Thursday, 8 October 2026. 

In addition to consolidating the companies, the merger will change the business model of the industrial estates. Land will no longer be the primary source of revenue. 

“Going forward, land will no longer be a source of revenue, but we will provide the land free of charge. Revenue will come from the facilities we provide,” he said. 

Under the new model, investors entering the industrial estates will not have to pay for the land. Instead, Danantara will generate revenue from various facilities and services provided within the estates. 

Dony said the industrial estates would be developed under an integrated concept. The facilities being prepared include schools, property developments, electricity, water treatment and fibre-optic networks. 

“The government is preparing an integrated industrial estate, which will include schools, property, electricity as a source of revenue, water treatment, fibre optics and other facilities,” Dony said. 

Dony said the change in the business model was intended to accelerate investment into Indonesia. By no longer charging investors for land, Indonesian industrial estates are expected to become more competitive compared with those in other countries in the region. 

“The first stage is related to this because we want to encourage investment to enter Indonesia more quickly, so we are also reviewing the business model of our industrial estates,” he said. 

He said Danantara wanted to encourage as many investors as possible to enter Indonesia in order to increase industrial competitiveness and create more employment. 

“We are encouraging them to come in as much as possible so that we can become more competitive and create many jobs for the Indonesian people,” Dony said. 

Following the consolidation, Danantara will manage industrial estates covering a total area of around 35,000 hectares. 

“We will become the largest industrial estate manager in Southeast Asia,” he said. 

Dony said the merger was part of the restructuring of state-owned enterprises and the separation of industrial estate businesses from asset management functions. 

However, the final mechanism for providing free land is still being formulated. He said certainty regarding the new business model would be announced after the merger process is completed on 5 November 2026. 

“This is the business model we are still formulating. God willing, it will be announced after 5 November, but in principle, it will be more or less like that,” Dony said. 

This article is published in partnership with Katadata    

Original article here