The Indonesian government plans to introduce a “one city, one factory” concept to boost the economies of cities across the country, Coordinating Minister for Economic Affairs Sofyan Djalil said.
“In essence, the government will act as an initiator to encourage investors to invest in other cities. It will provide incentives and support. The economy of a city will grow if an industry is established there,” he stated after accompanying President Joko Widodo to a consultation meeting with President Director of industrial estate operator PT Jababeka Tbk, Setyono Djuandi Darmono, here on Tuesday.
Djalil added that the concept will be able to develop cities in the country and help alleviate the burdens borne by investors, including those related to production costs and wages that continue to increase in and around Jakarta.
Moreover, Darmono has urged factories that are successfully operating in and around Jakarta to set up units in other regions by receiving incentives that suit their needs.
“The step is taken to boost the growth of industrial estates in other cities in Indonesia, as well as to reduce the burden of companies in and around Jakarta,” he pointed out.
He further noted that the incentives from the central government should be adjusted to meet the needs of the investment destinations and investors.
In addition, the government will also try to overcome obstacles in the field of legal certainty and land clearance, and employ skilled human resources.
