Government targets Rp89.6 trillion investment in new SEZs

Government targets Rp89.6 trillion investment in new SEZs

Secretary of the Coordinating Ministry for Economic Affairs Susiwijono (Antara News/Dewa Wiguna)

The development of the three new SEZs by 2024-2025 will absorb tens of thousands of workers and is expected to drive the regional economy and society
Jakarta (ANTARA) - The Indonesian  government is looking for an investment of nearly Rp89.6 trillion in stages in the three special economic zones (SEZs) established through government regulations (PP). "We will evaluate the target every year," Secretary of the Coordinating Ministry for Economic Affairs Susiwijono said in Jakarta, Monday, after submitting a copy of the PP to the relevant regional government and business entities proposing three SEZs, namely Singhasari in East Java, Kendal in Central Java and Likupang in North Sulawesi.

The evaluation was conducted through the National Council of Special Economic Zones covering the achievement targets and the development process, he said.

The development of the three new SEZs by 2024-2025 will absorb tens of thousands of workers and is expected to drive the regional economy and society, Susiwijono explained.

The investment target in the Singhasari Special Economic Zone reached Rp12.5 trillion by employing 6,863 people with businesses such as tourism and the digital economy being rolled out, he revealed.

The special economic zone is expected to become a center for digital economic development by cooperating with several multinational technology companies such as Amazon, IBM, Apple, and Google. The operator of the special economic zone will work with several leading universities in the world.

Meanwhile, the Likupang Special Economic Zone has a gradual investment target of around Rp7.1 trillion, which is engaged in the tourism sector, and can attract around 400 thousand tourists, he said.

The Likupang Special Economic Zone would absorb around 65 thousand workers both directly and indirectly, he estimated.

The Kendal Special Economic Zone has a gradual investment target of around Rp70 trillion with estimated employment of 20 thousand people.

The government targeted the Kendal Special Economic Zone to realize the value of exports in the first year or 2021 of at least US$500 million and import substitution of at least $250 million, he said.

To date, the government has established 15 special economic zones consisting of nine for industry and six for tourism.

Of the 15, 11 of which have operated or have served investors.

The total investment commitment reached Rp88.7 trillion until 2019 from the 11 special economic zones that had been operated with a workforce absorption of around 8,686 people, Susiwijono said.

President Joko Widodo had previously approved the establishment of three new special economic zones through Government Regulation (PP) No. 68 of 2019 for the Singhasari special economic zones in Malang Regency, East Java).

Then there was PP Number 85 Year 2019 for the Kendal special economic zones in Central Java, and PP Number 84 Year 2019 for Likupang special economic zones in North Minahasa District, North Sulawesi. (INE)
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