"We cannot bar other countries from copying us. What we can do is compete against them," Hartarto said after attending the 2025 IBC Business Competitiveness Outlook event.
The binational SEZ was established last week following a joint agreement signed by Malaysian Prime Minister Anwar Ibrahim and Singaporean Prime Minister Lawrence Wong in Putrajaya, Malaysia's administrative capital.
Both leaders expressed confidence that the SEZ will stimulate regional economic growth, benefit national economies, and attract global innovation and investments.
Hartarto highlighted that SEZs have enabled Indonesia to produce derivatives of critical mineral commodities, a success he perceives is being "imitated by neighboring countries."
"We have developed many special economic zones, and they, especially Malaysia, viewed it as a factor that led to Indonesia's success in developing its critical minerals," the coordinating minister stated.
"They want to imitate this in digital innovation, including AI (artificial intelligence) or cloud computing," he affirmed.
Indonesia currently has 24 areas designated as SEZs, which are active in various industry sectors, such as manufacturing, the digital economy, health and education, and aircraft maintenance.
With the involvement of 394 business actors on various scales, Indonesia's SEZs attracted investments totaling Rp256.7 trillion (US$15.78 billion) and created jobs for 156,208 people from 2012 to 2024.
Meanwhile, in 2024 alone, SEZs in Indonesia secured Rp82.6 trillion (US$5.08 billion) in investments and generated employment for 42,930 people.
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Translator: Bayu Saputra, Nabil Ihsan
Editor: Primayanti
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