Morgan Stanley: Indonesia to Continue Economic Reform under Widodo's Second Term
President Joko Widodo inaugurated Bitung Special Economic Zone in North Sulawesi province, Morotai in North Maluku province, and Maloy Batuta Trans Kalimantan in East Kalimantan province - Photo by President Office.
JAKARTA (TheInsiderStories) — President of Indonesia, Joko Widodo inaugurated three special economic zones (SEZ) in eastern of the archipelago. The zones are Bitung in North Sulawesi province, Morotai in North Maluku province, and Maloy Batuta Trans Kalimantan in East Kalimantan province.
Government projected that all of those zones would absorb Rp110 trillion (US$7.72 billion) of investment.
“We hope that with the special economic zones, the processing industry and other industries can develop in the country so that we are no longer just exporting raw materials, but also products that have higher added-value. In addition, employment is also expected to be open as widely as possible,” said Widodo after the launching ceremony in Manado, North Sulawesi today (01/04).
With 534 hectares area, Bitung SEZ will have processing industries of coconut, fisheries, pharmacy, and logistic. It is expected to attract Rp35.2 trillion investment and absorb more than 34,710 workers. Recently, several investors have committed Rp3.8 trillion, including  Rp2.8 trillion recycled paper processing industry from PT Futai Indonesia.
Coordinating Minister for Economic Affairs, Darmin Nasution stated, Bitung zone also supported by national strategic project of Bitung international hub port and Manado-Bitung toll road. Government projected that Bitung SEZ would give Rp92.1 trillion output in 2025.
Meanwhile, the 1,101.76 hectares Morotai SEZ focuses on fisheries and tourism industry. It is expected to gain Rp37.24 trillion investment with 30,000 workers. In 2025, Morotai zone is projected to contribute Rp1,452 trillion output.
The least, Maloy Batuta Trans Kalimantan has palm oil, energy, and logistic as its main processing industries. Built above 557.34 hectares, the area is expected to attract Rp37.71 trillion investment and absorb at least 55,700 workers. In 2025, the zone could contribute Rp4.67 trillion to East Kutai district’s Gross Domestic Product (GDP).
According to the government, the three SEZs are located in a very strategic location, along an international trade sea route to and from the Asia Pacific, Indonesian Archipelago Sea Channel. In addition, the migration pathways for tuna fish are abundant as raw materials for the fishing industry. And by these new SEZs, Indonesia now has 10 operating-special economic zones.
Gas Infrastructure Development
Separately, Energy and Mineral Resources Minister Ignasius Jonan, Sunday, inaugurated Grissik – PUSRI open access gas transmission pipe and Palembang gas network, both in South Sumatera province. The $143 million Grissik – PUSRI gas transmission has 176 kilo metres long with 20 inches diameter, crosses Musi Banyuasin district, Banyuasin district, and Palembang.
The gas transmission has 70 mmscfd capacity. In the next stage, PT Pertagas, the operator, expects to increase the capacity to 160 mmscfd. Furthermore, Palembang has additional gas connections for 4,315 Palembang households.
This is the second time Palembang received gas network. Now, there are 7,626 households connected to the gas networks.
Since 2009, there are 325,773 gas networks to households in 40 cities and districts in 16 provinces developed by State budget. This year, government planned in developing 78.216 more connections in 18 locations.
US$1: Rp14,100
Written by Staff Editor, Email: