Three Manufacturing KEKs Ask for Area Expansion, Sesmenko Susiwijono: Proof that Indonesia Remains Attractive for Foreign Investors

Illustration (Photo: ANTARA)

JAKARTA - The government has confirmed that Indonesia is still an attractive investment destination for foreign investors, and this is reflected in the high investment interest in a number of Special Economic Zones (KEK), especially the Kendal KEK, the Galang Batang KEK in Bintan, and the Gresik KEK.

The Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, revealed that the managers of the three largest manufacturing KEKs have applied for an expansion of the area to accommodate the entry of new investments from abroad.

According to him, the need for land expansion arises because the capacity of the existing area is almost full, while the interest of foreign investors to invest continues to increase.

"Of the many KEK, the special economic zone, the three largest manufacturing KEKs are starting from Gresik, then Kendal, and Galang Batang in Bintan. The three of them are applying for land expansion, expansion areas. Why? Because the existing investment is full and foreign investors who want to come are queuing up," he told the media, Friday, June 19.

He explained that based on the government's initial calculations, the potential additional investment that could enter the three KEKs is estimated to reach around IDR 557 trillion.

Meanwhile, the value is a potential long-term investment that will be realized gradually in line with the development of the area and the entry of new investors.

"This morning I discussed with friends the potential for additional foreigners who want to enter. In three KEK alone, we calculate around Rp. 557 trillion. Ultimate yes, not in the near future," he explained.

Susiwijono revealed that the request for expansion of the area submitted even reached about twice the area of land currently available.

He explained that for the Gresik Power Plant, for example, an additional land of around 1,200 hectares was needed, while the Kendal Power Plant proposed an addition of around 1,000 hectares, and the Galang Batang Power Plant in Bintan proposed an expansion of around 2,600 hectares.

According to him, the high demand for the expansion of the area is a strong indicator that foreign investors still have a high level of confidence in the investment prospects in Indonesia.

"So in my opinion, it is one of the measures if asked, whether foreign investors still believe in Indonesia as an investment destination. Well, this is the fact that the three largest manufacturing KEK are applying for land expansion, on average, twice more, why? because there are so many foreign investors who want to invest. That is also one indicator, "he said.