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Accelerating Development Equity through Industrial Zone

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Accelerating Development Equity through Industrial Zone

The administration of Joko Widodo and Jusuf Kalla is intensively building facility and infrastructure, such as the construction of toll roads, ports to industrial areas. President Joko Widodo has just inaugurated Java Integrated Industrial and Port Estate (JIIPE) and supporting ship of sea toll in Gresik, East Java more recently (9/3/2018).Currently, 10 new industrial areas are already in operation. In fact, there are three additional industrial areas following the completion of construction in 2018. The government targets that in 2018, the value of investment that can be drawn from 13 industrial areas spread across several regions in Indonesia reaches Rp250, 7 trillion.The development of an industrial estate is in line with one of the Nawacita programs, namely the nine prioritized agendas of the administration of Joko Widodo and Jusuf Kalla. The point is that the government builds Indonesia from the periphery by strengthening regions and villages within the framework of the unitary state of republic of Indonesia through increasing people's productivity and competitiveness. The development of an industrial estate is also a step by the government to reduce domestic economic inequality.Many benefits can be obtained through the industrial area in a region. In addition to attracting foreign investors to invest their funds in Indonesia, the development of industrial zone can also invite foreign investors to open branches and establish factories in the region. Thus, the export activity will increase and bring about positive impact on foreign exchange earnings and employment.Industrial zones are usually built outside the city center and on vast lands. This can reduce the dependency of the population to live and work in the city center. The flow of urbanization will be controlled and the equity of the population will also proceed well. The workforce is not focused in the city center, because the people will live around the industrial area. Of course, this will reduce the density of the population in the city and make the distribution of the population spread  in several areas.Industrial areas are also usually equipped with various facilities. The Java Integrated Industrial and Port Estate -JIIPE industrial area, for example, is the first integrated area in Indonesia and the largest in East Java with a total land reaching ‚Äč‚Äčabout 3,000 hectares. Using the concept of merging industrial estates, ports and settlements is expected to absorb a lot of manpower and can lead to multiple impacts, such as the establishment of various supporting facilities.Industrial zones will not only affect the economy of business actors, but also will be able to move the economy of the community around the industrial area.Aside from a lot of benefits that can be enjoyed from the development of industrial zones, one thing that must be kept in mind is to pay attention to the principles of environmental sustainability that are oriented towards the welfare of the community. Do not let industrial zones cause environmental problems, such as increased air pollution from industrial smokes or water pollution from factory wastes. Industrial zones are built for the sake of equitable development and bring about more benefits not only to the government, but also to the people in general.

Read 1436 times Last modified on Tuesday, 13 March 2018 08:34