SURABAYA â€“ Industrial growth in Indonesia is still around 4,7 percent, or still under general national economic growth of 5,2 percent.
One of the boosters of industrial growth is industrial estates, of which, this year, 11 estates will be developed by the government.
â€œDevelopment of new industrial estate will not do any harm to the existing ones. Because eventually, clients will be segmented by the requirement and characteristics of the industries. Taking Surabaya Industrial Estate Rungkut (SIER) as an example, which currently fully occupied, will not be shifted to different areas because it is already settle,â€ explain Fattah Hidayat, Director of PT SIER, between the times of accepting a visit from one of the member of Commission VI of House of Representatives (DPR RI), Bambang Haryo Sukartono, on Tuesday (15/8/2017).
Also presents in the meeting was Communication Forum of tenants or companies within SIERâ€™s area. Among others PT HM Sampoerna.
It was revealed during the meeting that industrial estate provides large contributions to the industrial growth. Proper infrastructure will be able to attract customers or investors to develop their industries from manufacturing, packaging, warehouse, to distribution.
â€œMain road access or access to toll road is also sufficient and nearby. One of which is located at Pasuruan Industrial Estate Rembang (PIER), with toll access between Gempol â€“ Rembang,â€ added Bambang.
Furthermore, Director of PT SIER, Fattah Hidayat, said that last year, only 1 investor came to invest at SIER. Whereas this year, so far, there are 3 investors at PIER and SIER.
â€œThe slow growth of industry has also affected demand of industrial estate,â€ added Fattah.
Even though affected, PIER has prepared strategic steps in further developing its industrial estate, adding 25 hectares to the existing 563 hectares.
â€œIt is currently on the phase of land acquisition. The cost of land acquisition will be included in the 2018 fiscal year,â€ explained Fattah.
PT SIER currently has 3 industrial estates, which are SIER (Surabaya Industrial Estate Rungkut) with total area of 245 hectares, Sidoarjo Industrial Estate Berbek (SIEB) with total area of 87 hectares, Pasuruan Industrial Estate Rungkut (PIER) of 563 hectares.
â€œSIER and Brebek are currently fully occupied. Whereas PIER is 50 percent occupied. We are optimistic that this yearâ€™s target of Rp 100 billion net profit will be accomplished,â€ he elaborated.
Fattah beliefs that industrial estate in East Java still has potencies to grow supported by facilities and infrastructures. Access to PIER is currently supported by the operation of Gempol â€“ Pasuruan Toll interchange. Moreover, the area can also be reached through Porong flyover.
Corporate Secretary of PT SIER, Teguh Rudi Siswanto added that with those said infrastructures, PIER can be accessed from Surabaya in 30 minutes.
He also mentioned a cooperation with KA Log for the development of dry port to facilitate industrial access to different regions. The project is currently still on the phase of pre feasibility study.