Government Says Special Economic Zone Development Is Not Only About Manufacturing, There Is Tourism To Education

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani said that throughout 2021 the government will add four Special Economic Zones (SEZs) spread throughout Indonesia. According to the Minister of Finance, productive activities in SEZs are not only about manufacturing activities but also other orientations that have the potential to encourage the economy.

“This Special Economic Zone is engaged in an increasingly varied field. The manufacturing sector is clearly a traditional sector for SEZs. However, currently we also have a Special Economic Zone that is engaged in tourism, creative economy, and education," he said in a webinar held on Monday, September 13.

The Minister of Finance added that the number of SEZs that are already operating or under construction are 19 locations in various regions of the archipelago. Meanwhile, until the close of 2020, the total investment commitment in Special Economic Zones was recorded at IDR 70.43 trillion.

"Of course, the presence of the special area can provide an alternative for regions in Indonesia to be able to spur economic growth," he said.

Furthermore, the state treasurer revealed that the goal of developing SEZs is to increase the presence of investment capital, both from within and outside the country.

"With the presence of this capital, industrial activities will become more productive, more competitive and will increase our exports," he said.

It was also stated that the SEZ provides easy import facilities through incentives and discounted tax rates which are expected to further realize the ideals of becoming a center of economic activity that has high value.

"We all want regional breakthroughs to emerge for the growth of regions in Indonesia by utilizing this SEZ facility," he added.

To note, the development of Special Economic Zones was first stated in Law Number 39 of 2009 concerning Special Economic Zones.

In the course of its journey, the policy later became part of the Job Creation Act and became the basis for the issuance of the technical policy of Government Regulation Number 40 of 2021 concerning the Implementation of Special Economic Zones.

"The regulation is a certainty for business actors, especially in terms of fiscal incentives provided by the government," he said.

Here are 19 Special Economic Zones spread throughout Indonesia.

SEZs that have been in operation: 1. SEI Mangkei SEZ 2. Tanjung Lesung SEZ3. Palu SEZ4. Mandalika SEZ5. Galang Batang SEZ6. SEZ Arun Lhokseumawe7. KEK Tanjung Kelayang8. SEZ Bitung9. Morotai SEZ10. KEK Maloy Batuta Trans Kalimantan (MBTK)11. SEZ Sorong12. Kendal SEZ

SEZ in Development Stage:1. SEZ Tanjung Api-Api2. SEZ Singhasari3. SEZ Likupang4. KEK BAT (Batam Aero Technic)5. SEZ Nongsa6. SEZ Lido7. Gresik SEZ