JAKARTA (TheInsiderStories) – Coordinating ministry for economic affairs (CMEA) reported Indonesia has develop 13 special economic zones (SEZ) spread across the country, with total investments Rp85.3 trillion (US$6.05 billion) and have absorbed a workforce of 8,686 peoples. The nation aimed to build 17 SEZs in this year.
“The government has targeting to develop 17 SEZ until the end of 2019 and the target can be achieved,” said the CMEA Darmin Nasution on Thursday (10/10) at his office in Jakarta.
Based on the ministry data, number of SEZs have been operated such as in 2012 has build SEI Mangkei SEZ in North Sumatra, Tanjung Lesung SEZ in Pandeglang Regency (Banten), Palu SEZ (Central Sulawesi), Bitung SEZ (North Sulawesi), and Morotai SEZ (North Maluku).
In addition, the Maloy Batuta Trans Kalimantan SEZ (East Kalimantan), Mandalika SEZ (West Nusa Tenggara), Tanjung Kelayang SEZ (Bangka Belitung Islands), Arun Lhokseumawe SEZ (Aceh), and Galang Batang SEZ (Riau Islands).
Furthermore, the Sorong SEZ (West Papua) will become the eleventh SEZ, whose operations will be officially opened on Oct. 11. The other SEZs, namely the Singhasari SEZ have just been designated as SEZs through Government Regulation Number 68 of 2019, and the Tanjung Api-api SEZ in South Sumatra whose status have been previously established, are now preparing to enter the operational stage.
In addition to the 13 SEZs that have been set, adds by the minister, four SEZs in the process of being determined are Kendal SEZs (Central Java), Likupang SEZs (North Sulawesi), Nongsa SEZs (Batam), and MRO SEAs (Maintenance, Repair and Overhaul) in Batam Island.
He explained, SEZs became a regional economic driver. He gave an example, Galang Batang SEZ in the Riau Islands will become an integrated bauxite downstream center with an investment commitment of Rp36.25 trillion until 2023.
With the presence of Galang Batang SEZ, the regional income of the Riau Islands Province increased by 25.80 percent in the period 2015 to 2017. Gross Regional Domestic Product increased by 15.58 percent in the period 2015 to 2018 and will continue to increase along investment developments coming into Galang Batang SEZ.
In the Mandalika SEZ (Lombok), world class hotels are being built such as Pullman, Royal Tulipe and Paramount, and is preparing to host a MotoGP performance in 2021.
The investment commitment in this tourist area reaches Rp17.5 trillion. Data on the development of tourist visits in Central Lombok Regency 2015-2018 shows foreign tourist arrivals increased 361 percent and domestic tourists increased 170 percent.
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