Indonesia to Consolidate 23 State-Owned Industrial Estates Under New Holding Company

Indonesia's sovereign investment agency, Daya Anagata Nusantara (Danantara), revealed a plan to unite 23 state-owned industrial estates into one holding company called PT Kawasan Industri Indonesia. The merged entity will control roughly 35,000 hectares, positioning the country as the largest industrial estate manager in Southeast Asia. The strategy includes a shift away from land-sale revenue toward ongoing fees from integrated utilities, facilities and investor support services.

Danantara COO Dony Oskaria, who also heads the State-Owned Enterprises Agency, said the consolidation will be announced on November 5 and is intended to attract more foreign capital and generate jobs. PT Danareksa, previously the holding company for these estates, will return to its core function as a pure asset manager after the transfer.