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JAKARTA - The Coordinating Ministry for Economic Affairs (Kemenko Ekonomi) conveyed that investment commitments in Special Economic Zones (SEZ) after the implementation of the Job Creation Law (UU Ciptaker) had reached Rp60 trillion until 2022.

"The Ciptaker Law has partially amended the KEK Law," said Elen Setiadi, Expert Staff for Regulation, Law Enforcement, and Economic Resilience at the Coordinating Ministry for the Economy.

He explained that after the implementation of the Ciptaker Law, there were the addition of four new SEZs, namely Gresik SEZ, East Java, Lido SEZ, and two new SEZs in the Batam area, Riau Islands, namely Nongsa SEZ and Batam Aero Technic SEZ.

The Gresik SEZ oversees the construction of the PT Freeport Indonesia smelter, while the Lido SEZ oversees MNC Land, which is expected to have one completed project in September or October 2022.

Elen added that there is a data center from Hong Kong in the Nongsa SEZ with an investment value of IDR 7 trillion. While the Batam Aero Technic SEZ is one of the development centers of the Lion Air Group and there will be an additional 20 hectares of land.

"This will be a repair center for Lion Air around the world, because Lion airlines are not only in Indonesia, but also in Malaysia, the Philippines, Thailand, Myanmar and Vietnam," he said.

He also hopes that the investment commitment in the four new SEZs can reach Rp. 90 trillion by 2024 and the progress will be very fast.

In addition, other SEZs after the implementation of the Ciptaker Law also seem to be getting more and more stretched, such as one of the SEZs of Galang Batang, Riau Islands, which has successfully launched its first export launch in 2022 Smelter Grade Alumina (SGA).

The smelter, he said, is one of the largest alumina smelters, which is expected to have a capacity of 2 million tons per year this year, so that it can beat other smelters.

"With the support of this new regulation, it can encourage investment. So that's what we see," said Elen.


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