The Government Approves The Proposal For The Establishment Of Six New SEZs Worth Rp1,089.84 Trillion

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

JAKARTA - The National Council for Special Economic Zones (KEK) has approved the proposed formation of six new SEZs and one expansion of the Nongsa SEZ in Batam with an investment target of Rp1,089.84 trillion.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the SEZ development is expected to be able to create more than 14 million jobs.

"All of the SEZ's proposals will soon be prepared for regulations and we are targeting the relevant Government Regulation (PP) to be completed in the second week of October 2024," Airlangga said in a statement in Jakarta, quoted from Antara, Wednesday, September 25.

The National SEZ Council will recommend to the President the determination of PP over 6 new SEZs and the broad addition to the Nongsa SEZ.

The 7 SEZs proposed are the first, the Sidoarjo Halal Industry SEZ, which is located in Sidoarjo Regency, East Java Province. The SEZ has a land area of 796.65 hectares and is designed to support the development of the manufacturing sector which focuses on halal products.

SEZ of the Halal Sidoarjo Industry is targeting investment realization of IDR 97.8 trillion in 2054 with a target of 317,670 workers.

The second proposal, the Batuta Chemical Industrial Park SEZ in East Kutai Regency, East Kalimantan Province. This SEZ is designed to become an industrial center focused on the manufacturing sector with a land area of 748.9 hectares. With the potential for a total workforce of 432,964 people, the BCIP SEZ has a target investment realization of IDR 61.51 trillion by 2054.

The third proposal, the Patimban SEZ in Subang Regency, West Java Province. This SEZ has a land area of 511 hectares with a total investment realization of IDR 141.6 trillion in 2054 with a target of 156,154 workers.

In addition to the Patimban SEZ, SEZ Subang which is also located in Subang Regency, West Java Province and is a manufacturing SEZ, this SEZ proposed by PT Aneka Bumi Cipta is the fourth proposed SEZ proposal by targeting the realization of subang SEZ investment of IDR 134.59 trillion with a land area of 481.93 hectares.

The fifth proposal, the Mangkupadi SEZ, located in Bulungan Regency, North Kalimantan Province, is a proposal by PT Kalimantan Industrial Park Indonesia (KIPI). With a land area of 11,696.53 hectares. This SEZ is targeted to absorb 140,796 workers and realize an investment of IDR 504 trillion.

Sixth, the SEZ of the Batang Integrated Industrial Estate located in Batang Regency, Central Java Province. This SEZ targets investment realization to reach Rp130.3 trillion with a land area of 2,886.87 hectares and a total employment of 325,651 people.

Then seventh, the proposed expansion of land in the Nongsa SEZ covering an area of 22.43 hectares with a target investment realization of IDR 20.07 trillion.

"The proposal for the expansion of the Nongsa SEZ is for the development of a data center where the proposer from this SEZ is PT Taman Resort Internet with business activities from the Nongsa SEZ, namely tourism, and research, technology development," explained Airlangga.