The President Joko Widodo (Jokowi) Administration has development 12 Special Economic Zones (SEZs) throughout Indonesia. The investments booked for the 12 SEZs reached a fantastic value of Rp221 trillion until the end of July 2017.
Coordinating Minister for Economic Affairs Darmin Nasution said to improve the welfare of the community, the government develops physical and industrial infrastructure as the basis for the society to do businesses. For the industrial infrastructure, the government has set up the industrial estates, SEZs, and national strategic tourism areas.
“The SEZ and tourism are united in one location called Mandalika. The government together with the business community and the local government have been developing three other areas like that,” said Darmin during the inauguration of SEZ Mandalika, Central Lombok, on Friday (10/20).
According to Darmin, 12 SEZs have been set up by the government. They consist of eight SEZs for manufacturing and four SEZs for tourism. Out of the 12 SEZs, four are already operating, i.e. SEZ Sei Mangkei, SEZ Tanjung Lesung, SEZ Palu, and SEZ Mandalika.
“It is expected that by the end of this year, there will be two more SEZs in operation, namely SEZ Lhokseumawe and SEZ Galang Batang, Bintan, while six more SEZs will be open in the first half of 2018,” he explained.
The six SEZs are SEZ Kuala Tanjung in North Sumatera, SEZ Pulau Asam Karimun in Riau Islands, SEZ Merauke in, SEZ Melolo in East Nusa Tenggara (NTT), SEZ Nongsa in Batam and Bangka Island Tourism Area.
Darmin further said that the investments flowing into the 12 SEZs are quite promising. Until the end of July, he added, the value of committed investments in the 12 SEZs reached Rp221 trillion. The government targets to establish 25 SEZs until 2019.
“In 2030 the investment in the SEZs may reach Rp726 trillion,” said the former Governor of Bank Indonesia (BI).
To accelerate the realization of 25 SEZs and attract more investments, the government has issued the Presidential Regulation (Perpres) Number 91 Year 2017 on the Ease of Business Acceleration Policy. With this policy, the investors who will invest in SEZs are given various incentives and facilities, so they can immediately realize their investment plans.
“The ease of business is expected to be utilized by the investors. It is one of the instruments to get the outside Java regions out of their lagging development,” said Secretary of National Council of SEZs, Enoh Suharto Pranoto.
The SEZs aim to accelerate the development, especially outside Java, and reduce the inter-regional gaps, as well as increase the value added and value chain on the raw materials or natural resources.
Source: The President Post