Airlangga Reveals SEZ Absorbs 151,000 Workers

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government had built 24 Special Economic Zones (SEZs) spread from Aceh to Papua. As for this year, the cumulative investment realized in the SEZ reached Rp242.5 trillion and employment reached 151,000 workers.

"Many jobs have also been achieved from the SEZ for this year, 242.5 trillion investments have entered with 151 thousand workers with 394 rather than business actors," he said at the Indonesia SEZ Business Forum 2024, Monday, December 9.

According to Airlangga, increasing investment through SEZs has become one way to encourage economic growth in ASEAN countries.

"KEK has become the main driver of growth in China, in Vietnam, in other ASEAN countries, in Thailand. So I think it's time for SEZs in Indonesia to maximize their chances. We don't have much time, the target is 3-4 years. Therefore, we have to take advantage of geoeconomics and geostrategics," he added.

Therefore, Airlangga, the government will encourage optimization and increase investment through the Special Economic Zone (KEK) in achieving Indonesia's economic growth target of 8 percent.

"Mr. President targets future economic growth to reach 8 percent, one of which we will encourage is optimization and increased investment through special economic zones," he said.

Airlangga said the government would continue to improve special economic zones, one of which is a special economic zone in the tourism sector which will continue to make improvements in terms of access so that it can encourage increasing tourists to several tourist areas.

"For example, Bangka Belitung, which requires access rather than regional flights, and the President has given directions that the regional flight should be opened because it is a very strategic location. Likewise, several other tourist targets including Labuan Bajo, including in the Mandalika area, Lombok. So some access from international aircraft to be able to enter directly," he explained.

In addition, Airlangga sees that the current geopolitical uncertainty can be an opportunity to attract investment in Indonesia due to the potential for industrial relocation. Where Indonesia must make improvements in various special economic areas so that investors are interested in entering.

"So I think the temperature is high. So, ASEAN, as one of the areas that is peaceful and politically stable, and continues to grow in the last two decades, then we must take this golden opportunity. The golden opportunity only comes once. There will be no other opportunity," he said.