"The Law on Job Creation partly changed the Special Economic Zone Law," expert staff for regulation, law enforcement, and economic resilience at the Coordinating Ministry for Economic Affairs, Elen Setiadi, said at a media briefing, which was accessed online from here on Wednesday.
After the Job Creation Law was adopted, four new SEZs were established, he noted. They were the Gresik SEZ in East Java, Lido SEZ in West Java, and Nongsa and Batam Aero Technic SEZs in Batam, Riau Islands, he expounded.
While PT Freeport Indonesia is currently developing a smelter in Gresik SEZ, MNC Land is seeking to develop a tourist attraction at Lido SEZ, he said.
One project at Lido SEZ is expected to be completed next September or October, he added.
A Hong Kong-based company has set up a data center worth Rp7 trillion (US$469 million) in Nongsa SEZ, while Lion Air Group is seeking to expand its business in Batam Aero Technic SEZ, Setiadi revealed.
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"(Batam Aero Technic SEZ) will be the maintenance center of Lion Air worldwide because Lion Air is not active only in Indonesia, but also in Malaysia, the Philippines, Thailand, Myanmar, and Vietnam," the official said.
He then expressed the hope that investment commitment for the four new special economic zones will reach Rp90 trillion (US$6.03 billion) in 2024.
The development of special economic zones has been expedited by the Job Creation Law, the expert staff highlighted, adding that an alumina smelter in Galang Batang SEZ in Riau Islands has begun exports.
The alumina smelter will be the largest in the region and is expected to have an annual production capacity of two million tons, he said.
"The support of new regulations can encourage investments, and that is our conclusion," Setiadi remarked.
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Translator: Agatha Olivia V, Nabil Ihsan
Editor: Rahmad Nasution
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