Industrial estate (IE) was established to obtain economic, territorial, and environmental advantages. A high
occupancy rate indicates an IE’s success, which depends on thorough IE planning and preparation. However, the
literature has not fully explored a comprehensive measurement of IE readiness in IE development planning. In
addition, the literature on measuring IE readiness is still partial because it only examines IE readiness in each
factor individually. It is limited to IE readiness related to investment, IE management, the environment, the
adoption of Industry 4.0, and sustainability. This study develops a new measurement tool to measure compre
hensive IE readiness ((the Industrial Estate Readiness Index (IERI)), which is done by involving all factors and
stakeholders in the IE system. First, in-depth literature studies and expert interviews were conducted to deter
mine the factors composing IE readiness. Next, the structure of the IE readiness index was designed by selecting
the subindices and indicators. The IERI mathematical model framework was developed to obtain the IERI for
mula, and the weights of the IERI factors were calculated via the analytic network process (ANP) approach. IERI
measurements were implemented in real cases on Indonesia IEs listed in the National Medium-Term Develop
ment Planning (RPJMN) 2020–2024, demonstrating its practical application. Finally, validation was carried out
by comparing the results of the IE readiness score using the developed IERI formula and with those of existing
tools and plotting based on the IE occupancy rate. The IERI score consistently increased alongside the occupancy
rate of IEs listed in the RPJMN 2020–2024. The IERI can be recommended as a standard measure in assessing the
readiness of IE that applies globally
