Government Targets Additional SEZ Investment Realization To Reach IDR 77.5 Trillion In 2024

JAKARTA - Secretary of the Coordinating Ministry for Economic Affairs as Acting Secretary General of the National Council for Special Economic Zones (KEK) Susiwijono Moegiarso said that in 2024 the SEZ targets additional investment realization of IDR 77.5 trillion and additional employment absorption of 38,277 people.

Susiwijono said that in 2023, investment realization will increase by IDR 66 trillion and the realization of employment will increase by 57,005 people, and the number of business actors will increase by 89 companies/industrials.

According to Susiwijono, until the end of 2023, the performance achievements of 20 SEZs have succeeded in contributing investment realization of IDR 177.5 trillion.

"All 20 SEZs have also succeeded in absorbing 117,492 workers, with 331 business/industrial actors," said Susiwijono in his official statement, Thursday, January 18.

In 2023, the Secretariat General of the National Council of SEZ in collaboration with the Institute for Economic and Community Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI) conducted a study related to the positive impact of SEZ on the regional economy and the national economy.

There are several main conclusions that can be that in general most SEZs develop and perform well or very well, and overall investment in SEZs contribute positively to the economy with trends that tend to increase during the 2019-2023 period.

The industrial SEZ with quite good performance is located or bordered in the Center for Economic Growth (PPE), and has an investor anchor, a good industry/business agglomeration rate, high competitive investment, and better levels of supporting infrastructure availability.

On the other hand, manufacturing SEZs that are in the outermost position or in areas that are currently transforming towards the manufacturing and service sectors, will have high competitiveness if they process natural resources or downstream natural resources.

Susiwijono conveyed that the existence of national/international events in the tourism-themed SEZ had a significant impact on accelerating the development of the SEZ, such as the Lido SEZ, Mandalika SEZ, and Tanjung Lesung SEZ.

Meanwhile, SEZs with digital themes and other service activities are able to develop well in the midst of various challenges that vary.

"Overall, it can be concluded that investment in SEZs has made a positive contribution to the regional economy and the national economy, with trends that tend to increase during the 2019 2023 period," said Susiwijono.

Susiwijono explained that in order to improve the overall performance of the SEZ by taking advantage of opportunities and overcoming challenges, the Secretariat General of the National Council of SEZs needs to evaluate the implementation of the SEZ in accordance with the decision of the KEK National Council Session in early 2023 and the agreement on the investment and labor realization plan submitted at the KEK Working Meeting at the end of 2022.

Furthermore, coordination is needed to take steps to resolve the problems faced, as well as ensure that the construction and development of the SEZ can run and achieve the planned target.

The implementation of the SEZ is certainly inseparable from the role of relevant stakeholders, both at the central government and local governments.

Seeing the potential of a number of current SEZs, the Government will always support various steps to increase the effectiveness of SEZ management in Indonesia.

One of the efforts to optimize SEZ development is through coordination of debottlenecking issues for the development and management of SEZs with Regional Governments (SEZ Areas Councils) and related Ministries/Institutions as well as policy synchronization.

Susiwijono emphasized that in its development, SEZ still requires cooperation and collaboration from various stakeholders. Through debottling the challenges of SEZ development so far, it is hoped that the future SEZ performance can be more optimal.

"Almost we have discussed all the challenges and strategic issues together. Thank you for the cooperation with 19 Ministries/Institutions. This forum is useful for solving various strategic issues, especially in supporting the implementation of SEZ as one of the pillars of our economic development. "said Susiwijono.