Government eyes investment of Rp725 trillion in SEZ in 2025

Government eyes investment of Rp725 trillion in SEZ in 2025

Deputy Coordination of Regional Development and Spatial Planning of the Coordinating Ministry for Economic Affairs Wahyu Utomo during a press conference in Batam, Riau Islands, on Friday (Dec 11, 2020). ANTARA/Naim/sh

By 2025, the investment is expected to increase to Rp725.42 trillion and absorb 672,173 workers.
Batam, Riau Islands (ANTARA) - The government has outlined a target to secure an investment of Rp725.42 trillion in Special Economic Zones (SEZ) in 2025 that would absorb 672,173 workers.

"By 2025, the investment is expected to increase to Rp725.42 trillion and absorb 672,173 workers," Deputy Coordination of Regional Development and Spatial Planning of the Coordinating Ministry for Economic Affairs Wahyu Utomo stated here on Friday.

The ministry has recorded an investment of Rp69.87 trillion in SEZ in 2020 that led to the absorption of 15,226 workers.

Currently, Indonesia has operated 11 SEZ: Sei Mangkei, Tanjung Lesung, Palu, Mandalika, Galang Batang, Arun Lhokseumawe, Tanjung Kelayang, Bitung, Morotai, Maloy Batuta Trans Kalimantan (MBTK), and Sorong.

The four other SEZ -- Tanjung Api-Api, Singhasari, Kendal, and Likupang -- are still under construction.

To achieve the target, Utomo spoke of the government having directed the development of SEZ toward export increase and import substitution, acceleration of industry 4.0, growth of less developed regions, development of the service/tertiary sector, and trade balance improvement.

On January 6, 2020, President Joko Widodo had signed Government Regulation (PP) Number 1 of 2020 on the Implementation of Special Economic Zones. Under this PP, the operation of SEZ encompasses proposing the designation of SEZ, construction and operation of SEZ, management of SEZ, and evaluation of SEZ management.

The PP stipulates that designation of SEZs may comprise export processing; logistics; industry; technology development; tourism; energy; creative industry; education; health; sports; financial services; and/or other economic activities as specified by the National Council. Related news: Bitung SEZ prioritizes attracting investment in pharmaceutical sector
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