Observers Call the SEZ Development Brings Benefits to Regional Economic Growth

Photos of the extended air zone of the Arun Special Economic Zone (SEZ) in the border area of Lhokseumawe and North Aceh, Aceh. (Photo: Doc. Antara)

JAKARTA - Digital Economy Observer Heru Sutadi assesses that the development of Special Economic Zones (KEK) will bring benefits to local regional economic growth.

Therefore, it is necessary to continue to encourage complete infrastructure and adequate human resources.

"The existence of KEK is indeed expected to become one of the new cogs in a region, driving the economy in the province, so that the economy is not centered in Jakarta or Java, but can also be spread evenly throughout Indonesia through KEK," said Heru, Tuesday, 6 December.

For example, the Nongsa Batam SEZ which is said to be Indonesia's silicon valley.

This area, said Heru, is attractive to investors if the infrastructure, human resources and tax issues are met.

"This SEZ needs to be supported, especially as this is the basis for moving the wheels of the digital economy, driving the wheel of digitalization in Indonesia, it cannot stand apart where ecosystems are built, road infrastructure, human resources, electricity including taxation," explained Heru.

Previously, the Coordinating Minister for the Economy Airlangga Hartarto, said the government's commitment and economic priorities, namely recovery, rebuilding a digital and sustainable economy.

"To overcome the problem of accessibility and financial stability. Digital transformation is an important agenda, including expanding digital investment in the regions," said Airlangga.

Airlangga said the government provided several digital talent development program supports, such as the Cyber ​​Creation Program, Digital Talent Scholarship, and Digital Leadership Academy.

"As well as the Pre-Employment Card, we are also continuously encouraged to be able to meet the needs of 9 million digital talents by 2030," he said.

The Ease of Investment

Meanwhile, Executive Director of the Committee for Monitoring and Implementation of Regional Autonomy (KPPOD) Herman N Suparman, revealed that the local government (pemda) should do several things to attract investment into the region.

According to him, from the aspect of policy, the regional government must draw up a number of regulations, starting from regional regulations on business licensing and accelerating the process of preparing a Detailed Spatial Plan (RDTR).

"Because this is the key to risk-based online single submission," said the man who is familiarly called Armand.

Armand assessed that after the passage of Law Number 1 of 2022 concerning Financial Relations between the Central and Regional Governments (UU HKPD), local governments must also accelerate the preparation of regional regulations related to regional taxes and levies.

"So, regional governments at the provincial or district level must accelerate the preparation of the tax and retribution regulations," he said.

Then from the institutional and bureaucratic aspects, added Armand, the regional government also needs to prepare human resources (HR)

Officials need to increase their capacity and ability, including in terms of mastery of the Online Single Submission Risk Based Approach (OSS-RBA).

"The simplification of the bureaucracy through de-echelonization also needs to be done in order to speed up the process of licensing services in the regions," he concluded.