The Strategy for Economic Planning

Industrial Development in Indonesia

The Situation:

One of the largest Asia-based urban, infrastructure and management services consulting firms headquartered in Singapore (DevCo*) engaged KeyHole Insights to assist in the economic planning of a mega industrial park for their client in Indonesia. Their client was interested to find out the best set of industrial clusters to develop for this park, based on the comparative, locational and strategic advantage for their industrial park. This would help guide the development of the estate and significantly raise the effectiveness of their investment attraction efforts.

Over the first 10 years of development in these 4 sectors, it is estimated that:

At a Glance

>500

Hectares of land will be developed

$350 mil

Fixed asset investment
(excluding land price)

>15,000

Employment opportunities

Our Approach

Taking into account the comparative and strategic advantage of the region by investigating factors such as land, labour, infratructure, exports, government policies as well as existing nearby value chain, KeyHole Insights proposed four key sectors most suitable for this industrial park. Additionally, KeyHole Insights performed market research into the outlook globally and regionally, sectoral requirements as well as opportunities for relevant value chains of each of the four key sectors.

As part of the engagement, we provided DevCo with

• competitive landscape analysis of competing industrial parks,

• global and regional forecast of the four industries,

• the specific value chain within each industry the client should focus on,

• Development roadmap outlining the sequence of development and investment promotion, and

• policy recommendations to strengthen the park's value proposition

Recommendations

This allows DevCo and her client to prioritise planning for the phasing of the industrial park's development, focus efforts for their investment promotion as well as aligning the industries for greater synergy when the park is up and running.

* While the name of our client have been changed for confidentiality reasons, the results are real.

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