Jakarta. Indonesia has established a new holding company, Kawasan Industri Indonesia, to consolidate the management of state-owned industrial estates and strengthen the country’s investment appeal, a senior official said on Monday.

The new holding company is part of a broader effort to simplify the management structure of industrial estates, which the government believes has lacked focus and integration, according to Dony Oskaria, chief operating officer of Danantara Indonesia.

“Kawasan Industri Indonesia is a new holding company dedicated specifically to managing all of our industrial estates and is expected to become one of the key drivers for attracting investment,” Dony said in Jakarta.

According to Dony, industrial estate operations have previously been mixed with unrelated business lines, creating the need for a specialized entity to manage the sector in a more integrated and professional manner.

“We are changing the business model to focus specifically on industrial estates,” he said.

Dony explained that the holding company will oversee all industrial estates owned by Indonesia’s state-owned enterprises through a more structured management approach.

Previously, state-owned industrial estates were managed within the Danareksa ecosystem. In 2024, Danareksa also announced plans to modernize industrial estate clusters and reduce dependence on land sales as the primary business model.

Under the latest restructuring led by Danantara, Danareksa will refocus on asset management activities, while industrial estate operations will be transferred to the newly established dedicated holding company.

Several subsidiaries previously managed by Danareksa have already been moved under Danantara’s control as part of Indonesia’s broader state-owned enterprise restructuring program.

Dony said the legal restructuring process is targeted for completion by 2026, allowing Kawasan Industri Indonesia to begin full operations in 2027.