TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Govt to issue reference price for industrial estates
Change Size
PT Perusahaan Gas Negara (PGN) workers examine gas pipes that will be installed to supply the Tambak Aji industrial estate in Semarang, Central Java on April 24, 2014. (tribunnews.com/Wahyu Sulistiyawan)
T
he government will issue a reference price for land in industrial estates in the second half of this year in a bid to curb land-price fixing, the Industry Ministry’s industrial estate director general Imam Haryono has said.
There will be two price references: one for industrial estates managed by state-owned enterprises (SOEs) and the other for those managed by private firms. The reference for state enterprise-owned estates will be issued before the privately owned one.
“Each region will have a different price reference in regard to the different supply and demand for industrial parks. The reference will help people to get an idea of an industrial estate’s price, but it is not a mandatory ceiling price for developers,” he told reporters on Tuesday.
The high cost of industrial land has been a key concern for the government amid its goal of spurring growth in manufacturing industry, which can generate an enormous multiplier effect in the economy.
High land prices are most evident in industrial areas across Greater Jakarta.
Data from property consultant Colliers International Indonesia show that the price of industrial land in Bekasi, West Java, one of the cities where many industrial firms are concentrated, for instance, climbed by 225 percent from only around US$60 per square meter (sqm) in 2006 to nearly $225 per sqm in 2016. (ags)
