Airlangga Says Indonesia Is Late In Developing SEZs, China And Vietnam Have Health First

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Doc. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia was late in developing a special economic zone (KEK).

He said that several countries in Asia had already succeeded in industrializing the construction of the SEZ.

According to Airlangga, China and Vietnam are the most developed countries in the industry because of the SEZ.

Indonesia, he continued, was a little late in developing the SEZ.

"I also convey that regarding the SEZ that is of concern, almost all countries in Asia have succeeded because of the SEZ, China, Vietnam. Indonesia is late for acceleration," he said after the plenary cabinet meeting in the capital city of Nusantara (IKN), East Kalimantan, Friday, September 13.

Airlangga added, now the government is trying to continue to accelerate the policy to encourage industrial progress in the country.

He said, there are two keys to the success of the SEZ.

First, he continued, investor confidence in governance in Indonesia. While the second is regulatory certainty.

One key is trust trust, legal side, and transparency. So the regulations launched are not made for other discretions," he explained.

Previously, Coordinating Minister for the Economy Airlangga Hartarto reported that Indonesia already had 22 Special Economic Zones (SEZs) spread from Aceh to Papua.

Airlangga also said that until the first semester of 2024, the investment had reached Rp205.2 trillion and absorbed 132,277 workers.

"From the SEZ, there are 12 industrial SEZs including the Kendal SEZ," he said, quoted from the Presidential Secretariat's YouTube, Wednesday, August 7.

Airlangga revealed that 105 industrial players have entered the Kendal SEZ with a total investment of IDR 55 trillion per year.

"With the presence of the Kendal SEZ, this contribution to growth in Kendal is 42 percent, and the per capita income in Kendal is 52 million per year, with growth of 8 percent," he explained.

In fact, Airlangga said that the Batang Integrated Industrial Zone (KIT) which is predicted to be the largest industrial area in Central Java will become a SEZ.

"And yesterday the President's directive was that our Batang will also make a SEZ," he said.