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JAKARTA - Indonesia's economic growth which recorded an impressive performance of 5.44 percent (yoy) in the second quarter of 2022 was supported by an increase in investment to IDR 302 trillion in the same period. This achievement is in line with the cumulative increase in investment in Special Economic Zones (SEZs) which amounted to IDR 84.5 trillion with the absorption of 32,850 workers.

Coordinating Minister for Economic Affairs Airlangga Hartarto as the National Board of SEZ said the progress of investment realization in the SEZ could not be separated from the improvement efforts made through the Job Creation Act. These include an expansion of business activities, namely health and education services, providing incentives and convenience, institutional arrangements, business licensing and supporting activities (OSS), electronic system tax and customs services.

This was conveyed virtually at the Group Discussion Forum (FGD) Optimizing the Utilization of Fiscal Facilities and Facilities in SEZs, in Jakarta, Friday, August 26.

Furthermore, Coordinating Minister Airlangga said that the impact of the improvement could be seen from the rapid progress of the four SEZs set in 2021 after the Job Creation Law, namely SEZ Nongsa and SEZ Batam Aero Technic in Batam, Riau Islands Province, SEZ Lido in West Java Province, and SEZ Gresik in East Java.

"The three SEZs within 1 year have realized an investment of IDR 29.1 trillion and 9,746 new jobs. In the future, the potential for investment in SEZs can be further increased so that new jobs can be expanded and increase multiplier effects that are beneficial to the people in the regions," said Coordinating Minister Airlangga in his statement, quoted on Sunday, August 28.

The FGD optimizing the Utilization of Fiscal Facilities and Facilities in the SEZ was held to discuss facilities related to fiscal facilities, especially tax holidays or tax allowances, exemption from import duties for capital goods in SEZs, and VAT facilities that were not collected for a number of goods and services transactions in SEZs.

"The National Board of SEZ hopes that the Deputy Minister of Finance and all levels of the Ministry of Finance can review the forms, sizes, and facilities provided by the SEZ, especially to face global competition and attract investment in Indonesia," said Coordinating Minister Airlangga.

Furthermore, Coordinating Minister Airlangga said that the SEZ National Council also encourages the implementation of the SEZ Application System in customs services supported by the Indonesia National Single Window (INSW). This system is expected to provide convenience for entrepreneurs to export or import raw materials as well as export goods or products into the country.

"This system is expected to be supported by customs services 24 hours a week for several SEZs whose export and import goods flow is quite high," said Coordinating Minister Airlangga.

Business Entities and Business Actors are also encouraged to take advantage of all facilities and conveniences in the SEZ, especially in the fiscal field in realizing investment and increasing new investments. For this reason, Coordinating Minister Airlangga said that if there are challenges, obstacles, or problems, the Secretariat General of the National Board of SEZ together with the Ministry of Finance and the Ministry of Investment/BKPM is expected to facilitate for completion for these activities.

"We hope that today's discussion can be followed well, so that it can accelerate investment realization, job expansion, and have a positive impact on the region and can encourage investment for national economic growth," concluded Coordinating Minister Airlangga.

The meeting also held a coaching clinic session which is expected to be a solution to various problems faced by Business Entities and Business Actors in the field. Furthermore, Plt. Secretary General of the National Council of SEZ Elen Setiadi on this occasion also said that until now a number of requests for tax holidays and tax allowances have been submitted quite a lot.

Also present on the occasion were the Deputy Minister of Finance, Deputy for Coordination of Regional Development and Spatial Planning of the Coordinating Ministry for Economic Affairs, Echelon 1 Officials of the relevant Ministries/Institutions along with their ranks, the Governors as Chair of the Regional Council, Administrators, Head of the Regional Office of the Directorate General of Customs and Excise, Head of the Tax Service Office, Head of the SEZ Management Business Entity, and Business Actors in the SEZ.


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