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Although not yet widely known, the industrial estate in Indonesia is divided into three generations, namely the first generation industrial estate, the second generation industrial estate, and the latest is the third generation industrial estate.
If the first generation industrial estate is fully developed and managed by the government, the second generation industrial estate is built by the private sector but the government still acts as a regulator. In terms of concept, both the first and second generation industrial estates are still limited to providing locations for factories without any other supporting facilities.
Meanwhile, the third generation industrial area which is the latest generation is designed to be more than just an industrial area, one example is the East Java Industrial Estate JIIPE. The third generation industrial estate such as East Java Industrial Estate JIIPE is equipped with settlements with all supporting facilities in an effort to create an independent and modern industrial city.
Third generation industrial estates, for example East Java Industrial Estate JIIPE, in this case have succeeded in accelerating local and national economic growth, as well as being able to create new, more modern industrial cities.