One of the obligations of Industrial Estate Companies is to meet Industrial Estate Standards which include infrastructure aspects of industrial estates, environmental management, and management and services.
Industrial Estate Companies that meet Industrial Estate Standards will be accredited by the Industrial Estate Committee. Conversely, Industrial Estate Companies that do not meet Industrial Estate Standards will be subject to sanctions. So, what are the sanctions imposed if such non-compliance occurs?
According to Government Regulation Number 40 of 2024 concerning the Arrangement of Industrial Estates, the sanctions imposed can be:
a. Written warning
A maximum of 3 written warnings will be given, each lasting for 30 days.
b. Administrative fines
If the Industrial Estate Company does not make improvements as requested in the warning letter, the Ministry of Industry can impose fines of up to 1% of the Industrial Estate investment value which must be paid by the Industrial Estate Company no later than 30 days after the fine letter is received.
The amount of the Industrial Estate investment value will be determined based on the audit results by an independent institution.
Therefore, Industrial Estate Companies are advised to comply with Industrial Estate Standards to improve the quality of the industrial estate itself and to avoid company losses due to administrative fines caused by non-compliance with these regulations.
If you have any questions regarding the above issue, do not hesitate to contact our team:
