Coordinating Minister Airlangga Calls Batam Has Potential To Leverage Indonesia To Become A Developed Country

Coordinating Minister for the Economy Airlangga Hartarto. (Photo: Doc. Setkab)

JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto said the Nongsa Digital Park Special Economic Zone (SEZ) located in Batam, Riau Islands is expected to be an entry point for global information technology (IT) business players to the national economy.

According to Airlangga, this area is believed to be able to save foreign exchange in the digital business of up to IDR 20-30 trillion per year and technology transfer in the IT sector so that it becomes a center for developing Indonesian young human resources.

“The Riau Islands Province has the most SEZs in Indonesia. We have a digital hub from Batam to various areas that are connected to IT. SEZs in this region can be a model and a beacon for the digital economy in Indonesia", he said in a press statement during a working visit, Saturday, June 12.

Airlangga added that the SEZ manager in Batam is expected to immediately realize the regional development commitment and bring investment from business actors in accordance with the set targets or even faster.

Thus, the investments presented are investments that can contribute optimally to the development goals of each region.

For this reason, he continued, the government continues to encourage investment realization, especially for data centers as an effort to improve and develop the digital economy. This development is believed to be able to help accelerate the national economic recovery due to the COVID-19 pandemic.

“Digital is the only activity that can accelerate the economy. It can jump, not just linearly and I hope this SEZ can become the main showcase of the Indonesian economy and make our country on par with developed countries", he said.

For information, Special Economic Zones are areas with certain boundaries within the legal territory of the Republic of Indonesia which are determined to carry out functions with certain economic benefits.

The main objective of SEZ development is to create economic growth, equitable development, and increase the nation's competitiveness.

To note, President Joko Widodo has signed two Government Regulations (PP) that stipulate the Batam Aero Technic Special Economic Zone (SEZ) (PP Number 67 of 2021) and the KEK of Nongsa Digital Park (PP Number 68 of 2021) located in Batam Island, Riau Islands Province.