Encouraging Economic Growth In Riau Islands Province, Tanjung Sauh SEZ Officially Determined

Photo: Doc. Coordinating Ministry for the Economy

JAKARTA - The President of the Republic of Indonesia, Joko Widodo, has signed Government Regulation Number 24 of 2024 which stipulates the Tanjung Sauh Special Economic Zone (SEZ) on Tanjung Sauh Island, Batam City, Riau Islands Province has an area of 840.67 hectares (ha).

The determination of the Tanjung Sauh SEZ aims to accelerate job creation, as well as develop the Batam City area in supporting local and national economic growth.

Regarding this matter, Plt. Secretary General of the KEK National Council, Rizal Edwin Manansang hopes that the development of the Tanjung Sauh SEZ can help grow the national economy.

"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," he said in his statement, Thursday, June 13.

Furthermore, Edwin also hopes that the development of the Tanjung Sauh SEZ in the future will be able to make a significant contribution to the Gross Regional Domestic Product (GDP) of the Riau Islands, with a cumulative projection of IDR 166.81 trillion.

Edwin conveyed that the commitment to investment realization of Rp. 199.6 trillion in the Tanjung Sauh SEZ is expected to be able to absorb 366,087 workers by 2053.

Edwin hopes that the Tanjung Sauh SEZ will become the center of economic activity with a focus on production and processing activities, energy development, logistics, and distribution.

In addition, Edwin said that the Tanjung Sauh SEZ will also develop the electronic component industry, such as PCB, RFID, GPS, CCTV, and semiconductors, as well as the electronics product assembly industry as part of its business portfolio.

Meanwhile, in terms of logistics, the existence of a port in the Tanjung Sauh SEZ will be an important bridge for logistics mobilization between the Riau Islands and the national market and the international community.

Edwin explained that the Tanjung Sauh SEZ will also act as a modern gateway port that can accommodate up to 5 million TEUS, as well as become a logistics center in the area between Batam and Bintan.

"Not only that, the Tanjung Sauh SEZ will also become a research and development center in the energy sector, as well as become a producer for alternative, renewable, and primary energy. This is expected to meet the needs of industry and households in the Batam-Bintan area," he said.

With the stipulation of Government Regulation Number 24 of 2024, Indonesia now has 21 SEZs spread across the country, and has recorded investments of IDR 187.5 trillion, and created jobs for 126,506 people by March 2024.

Edwin said that overall, the development of SEZs aims to increase investment, export, import substitution, create jobs, and introduce innovative models of regional development through industrial and service development.

"The main targets include global competitive industries, international tourism, education, health, and the digital economy," he said.