The Government Of The Republic Of Indonesia Targets Investment Realization In The Tanjung Sauh Batam SEZ To Reach Rp199.6 Trillion And Absorb 366,087 Workers

Photo: Doc. Antara

JAKARTA - The government targets the realization of investment in the Tanjung Sauh Special Economic Zone (SEZ), Batam, Riau Islands, of IDR 199.6 trillion and is expected to be able to absorb 366,087 workers by 2053.

Previously, the Tanjung Sauh SEZ was inaugurated by President Joko Widodo (Jokowi) through Government Regulation Number 24 of 2024.

"With the development of the Tanjung Sauh SEZ, it is hoped that it will boost Indonesia's competitiveness, as well as have a significant impact on the regional economy through investment revenues reaching Rp199.6 trillion and job creation, both direct and indirect, of 366,087 people when fully operational for 30 years," said Acting Secretary General of the National Council of the SEZ Rizal Edwin Manansang, in Jakarta, quoted from Antara, Wednesday, June 12.

SEZ covering an area of 840.67 hectares is located on Tanjung Sauh Island, Batam City, Riau Islands Province (Kepri). The determination of the Tanjung Sauh SEZ is carried out to accelerate job creation, development of the Batam city area in supporting regional economic development and the national economy.

Edwin explained that the optimal development of the area is expected to be able to contribute to the Riau Islands Gross Regional Domestic Product (GDP) reaching IDR 166.81 trillion cumulatively.

The Tanjung Sauh SEZ has plans for a production and processing business, energy development, and logistics and distribution. The Tanjung Sauh SEZ will develop the electronic component industry (PCB, RFID, GPS, CCTV, and Semiconductor), as well as the electronics product assembly industry.

In terms of ports, said Edwin, the existence of ports in the Tanjung Sauh SEZ between Batam and Bintan is an important bridge for logistics mobilization between Riau Islands and the national market and the international world.

The Tanjung Sauh SEZ will also act as a modern gateway port, capable of accommodating up to 5 million twenty-foot equivalent units (TEUS), and becoming a logistics center in the area between Batam and Bintan.

Furthermore, Edwin explained, the Tanjung Sauh SEZ will also become a center for research and development in the energy sector, as well as a producer of alternative energy, renewable energy and primary energy, which is considered to meet the needs of the industry and households in Batam-Bintan.

With the issuance of Government Regulation (PP) Number 24 of 2024, there have been 21 SEZs spread throughout Indonesia, and have recorded investments of IDR 187.5 trillion with the creation of 126,506 workers until March 2024.

"The development of SEZs in general aims to increase investment, exports, import substitution, create jobs, create breakthrough models for regional development through industrial development and services. What is targeted is a global competitive industry, international standard tourism services, education and health services, and the digital economy," he said again.