Malaysia-Singapore Unite To Build A New SEZ, Luhut: Indonesia Is Not Afraid To Compete

Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan. (Photo: Doc. ANTARA)

Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan revealed that Indonesia will have competitors, because Malaysia and Singapore are developing a special economic zone (SEZs), or a special economic zone (KEK) in Johor, South Malaysia.

This was conveyed by Luhut when inaugurating the lithium battery anode material factory PT Indonesia BTR New Energy Material in the Kendal Special Economic Zone (KEK), Central Java, on Wednesday, August 7.

"We will have competitors in the development of SEZs from Johor and Singapore, which earlier this year will be signed by the special economic zone corridor. Where Johor will create competitive land and energy resources, where Singapore supports the high quality of human resources," he said, quoted from the Presidential Secretariat's YouTube, Wednesday, August 7.

Luhut admitted that he was not afraid to compete with the two countries. He said Indonesia was ready to compete with Malaysia and Singapore in accordance with the direction of President Joko Widodo (Jokowi).

"Mr. President always says we are competitive, we have to compete, we are not afraid to compete with them. Because we also have good capital and strength and credibility of the trust we have built so far," he said.

With stiff competition, continued Luhut, credibility has a central role. He said Indonesia cannot compete to bring in investors if it only relies on incentives.

This 'credibility' is very important, because it will be a basis of trust for investors. We can no longer compete with neighboring countries just relying on incentives," he said.

"Not only incentives, but credibility and trust are key factors that we must maintain," he continued.

Luhut also emphasized that Indonesia cannot be taken lightly by other countries, let alone regulated.

Therefore, he asked all parties to oversee the policies and credibility that President Jokowi had built.

"That's why we all assistants to the president must really take everyone, oversee all these regulations well. We must maintain the credibility of the President, who has been built for 10 years," he said.