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Industrial Parks in Indonesia: Challenges and Opportunities for Sustainable Industrial Development

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picture of industrial park from afar

The importance of data availability in achieving sustainable development.

CGS's first-of-its-kind analysis provides a comprehensive dataset with key statistics on industrial parks in Indonesia.

Meet the CGS Experts!

Molly Schreier, Research Associate

Jiehong Lou, Assistant Research Professor

Claire Squire, Post-Masters Research Associate

Audrey Rader, Post-Bachelor Research Associate

Aboli Dahiwadkar, Research Assistant

Press Release: More from the experts!

Check out the database!

Schreier, M., J., Lou, A., Dahiwadkar, A., Rader, C., Squire, F., Tumiwa (June 2024). "Industrial Parks in Indonesia: Challenges and Opportunities for Sustainable Industrial Development". Center for Global Sustainability. 37 pp.

  • As Indonesia has prioritized downstreaming since 2014, Chinese investment has contributed to the development of a new wave of industrial parks focused on the processing of nickel, aluminum, and other key commodities
  • Based on the 79 industrial parks with reported electricity capacity, industrial parks source 6.20 GW exclusively from PLN, and 6.85 GW exclusively from captive coal
  • The 13 industrial parks focused on nickel processing have 10.91 GW of electricity capacity, almost half of the total 23.07 GW of electricity capacity accounted for in the dataset
  • Twenty-one industrial parks use or plan to use solar PV as one of their electricity sources, and 9 industrial parks have involved bioenergy in their energy mix
  • The dataset also tracks the cost of quick, large-scale industrial development, documenting 18 industrial parks with negative environmental impacts, 15 instances of disputes between industrial park companies and local residents, and 10 land acquisition disputes

The Center for Global Sustainability has released a pivotal report and comprehensive database on Indonesia's industrial parks, marking the first of its kind to provide in-depth insights into these critical economic zones. Through this dataset, the analysis seeks to capture changes in Indonesia’s industrial policy, identify the major electricity sources of industrial parks, and analyze the impact of industrial parks on local communities.


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