Jakarta (ANTARA) - Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, stated that the government is evaluating some Special Economic Zones (SEZs) and is about to revoke the SEZ status for areas with insignificant investment achievement.

"Based on the president's direction, we will evaluate some SEZs until next year. If there is no significant investment growth, we must revoke the SEZ status," Moegiarso stated at the Public Communication Strategy FGD for SEZ Development in Jakarta, Friday (November 10).

Currently, 20 areas have been designated as SEZs comprising 10 Industrial SEZs and 10 Tourism SEZs, namely Arun Lhokseumawe SEZ, Sei Mangkei SEZ, Batam Aero Technic SEZ, Galang Batang SEZ, Kendal SEZ, Gresik SEZ, Sorong SEZ, Bitung SEZ, Palu SEZ, MBTK SEZ, Nongsa SEZ, Tanjung Kelayang SEZ, Tanjung Lesung SEZ, Lido SEZ, Morotai SEZ, Likupang SEZ, Mandalika SEZ, Bali Kura-Kura SEZ, Sanur SEZ, and Singhasari SEZ.

"Withdrawing the SEZ status does not mean the industry will be closed. It can shift to a National Strategic Project (PSN). I hope the evaluation result will be out at the end of this year," he remarked.

However, he noted that the government continues SEZ development in the country. Of the 20 SEZs, they succeeded in achieving investment realization of Rp35.71 trillion, or 25 percent of the cumulative investment, in the third quarter of 2023.

Moreover, they were able to open job opportunities for 31,557 people, or 36 percent of the cumulative workforce. Meanwhile, additional exports also reached Rp8.15 trillion in the third quarter of 2023, he stated.

Related news: SEZ investment reached Rp8.5 trillion in 2023 first quarter: Ministry

Cumulative achievements until the third quarter of 2023 are the realization of SEZ investment of Rp140 trillion and the employment of 86,273 people.

Meanwhile, for 2023, the SEZ investment realization target is Rp62.2 trillion, with 69,763 new job offers.

His side along with the Economic and Community Research Institute (LPEM) of the Faculty of Economics and Business, University of Indonesia, are currently reviewing the SEZ performance indicators comprising investment value, employment, SEZ impact on the economy, and its multiplier effect.

"Back then, we only used the first two indicators to evaluate SEZ. Now, we will use four. (It is) because each SEZ cannot be compared with others. Education SEZ is different than manufacturing SEZ," he explained.

He remarked that several SEZs in Eastern Indonesia were indeed being reviewed and evaluated by the government. He also expressed hope that new investment would come into the SEZs.

"Their investment continues to increase, but we also need to give a target. If the target is not met, we will review it," he remarked.

He stated that revoking the SEZ status is hard, as it is not easy to obtain the status.

"Establishing one SEZ requires special government regulation and one Presidential Decree to appoint the SEZ regional council. It is not easy to create an SEZ," he stated.

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Translator: Citro Atmoko, Resinta Sulistiyandari
Editor: Yuni Arisandy Sinaga
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