"KEK helps us to encourage economic growth in the area with more job creation and investment coming into the region,"
Jakarta (ANTARA) - The Indonesian government is preparing to inaugurate four special economic zones (KEKs) with a total investment value of Rp161 trillion (US$9.6 billion).

Acting secretary general of the National KEK Council, Rizal Edwin, informed that the government is preparing to issue a government regulation (PP) to inaugurate the new KEKs.

"In order to determine the region as a KEK, it needs a government regulation signed by the President. The investment amount for the four KEKs is Rp161 trillion," he added during a media sharing session on Monday.

Providing further details, he said that the new KEKs include Nipa KEK in Batam city for the logistics and distribution industry for energy development.

The next is Banten Edutek Medika International in BSD, Tangerang district, for research, digital economy, development of educational technology, health, and creative industries.

The third is the Batam International Health Tourism KEK in Batam for health tourism, and the fourth is the Bungku Green Industrial KEK in Morowali, Central Sulawesi, for production, logistics processing, and energy development distribution.

"KEK helps us to encourage economic growth in the area with more job creation and investment coming into the region," Edwin said.

In the period from the beginning of KEK development until the first half of 2024, his party recorded investment realization of Rp205.2 trillion (US$12 billion).

Until the first half of this year, KEKs were able to absorb around 132,227 workers, Edwin said.

"From 2012 to the first semester of this year, we were able to collect Rp205.2 trillion. For this year, we have achieved Rp31.4 trillion (US$1.9 billion) from the target of Rp78.1 trillion (US$4.6 billion)," he added.

This year, the government is targeting 38,953 workforce absorption. Meanwhile, until the first half, only 39 percent, or around 15,229 workers, have been employed. To date, 22 KEKs have been inaugurated with a total of 368 business actors.

"KEK development should be in line with an improvement in the trade balance. We must encourage Industry 4.0 and build new economic centers," Edwin added.

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Translator: Bayu Saputra, Resinta Sulistiyandari
Editor: Arie Novarina
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