Indonesian state-owned industrial parks will waive land rental fees from next year to attract foreign investors, the chief operating officer of sovereign wealth fund Danantara Indonesia said on Thursday.
To cover the cost of the waiver, the parks will seek to earn revenue from facilities fees, such as electricity, water treatment and fibre optics, COO Dony Oskaria said
Danantara, which oversees all Indonesian state-owned enterprises, has been tasked with increasing investment inflows to help reach President Prabowo Subianto’s target of 8% economic growth by 2029
The announcement comes ahead of Danantara‘s planned merger of 23 state industrial park operators into a single entity next month, something it has done in other sectors to increase efficiency
The new entity will become the “largest industrial estate in Southeast Asia” with around 35,000 hectares (86,500 acres) of land under management, Dony said.
Reuters
