Friday, February 23, 2024

The National Council of Special Economic Zones approves the establishment of three new Special Economic Zones

Reading Time: 2 minutes
Journalist IBP

Journalist

Editor

Interview

The National Council of Special Economic Zones (SEZ) has given the green light for the creation of three new SEZs—Setangga, Tanjung Sauh, and Nipa, in an effort to boost economic development. 

Airlangga Hartarto, the Coordinating Minister for Economic Affairs, announced that the Council will recommend these three special economic zones to the President for official designation through government regulations.

Minister Airlangga highlighted that once designated, each SEZ will have a maximum of three years to become operational, with annual evaluations of the development progress.

Details of the New SEZs:

KEK Setangga in Tanah Bumbu, South Kalimantan:

  • Area: 668.3 hectares
  • Targeted Investment: IDR 67.69 trillion
  • Employment Projection (by 2053): 78,999 jobs
  • Key Industries: Refinery and biodiesel products, fractionation, rubber industry, nickel smelters, iron industry, and plywood industry.

KEK Tanjung Sauh in Riau Islands:

  • Investment Commitment: IDR 199.6 trillion
  • Employment Projection (by 2053): 366,087 jobs
  • Key Industries: Electronic component manufacturing, assembly, and heavy industries.

KEK Nipa in Riau Islands:

  • Investment Commitment: IDR 16.46 trillion
  • Employment Projection (by 2073): 40,949 jobs
  • Business Plan: Cargo trading with sales of finished and intermediate goods, aimed at optimizing economic opportunities in the outer islands.

Economic Contributions and job creation goals

The government envisions these SEZs as key drivers of economic growth, attracting significant investments and creating job opportunities. 

The strategic locations and diversified business plans of Setangga, Tanjung Sauh, and Nipa aim to foster export activities, reduce import dependency, and contribute significantly to Indonesia’s economic development.

Particularly noteworthy is the focus on KEK Nipa, strategically designed to optimize economic opportunities in remote islands. 

The business plan of cargo trading aligns with the government’s vision to leverage the unique economic potential of these outer islands.

With the creation of these SEZs, Indonesia is taking concrete steps toward enhancing economic activities, attracting investments, and generating sustainable employment. 

The commitment to annual evaluations reflects the government’s dedication to ensuring the success and impact of these SEZs on the nation’s economic landscape.

Journalist IBP

Journalist

 

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

Iwan Satriawan, a Constitutional Law Professor at the Muhammadiyah University Yogyakarta, has raised concerns about the Constitutional Court’s effectiveness in performing its check and balance duties, stating that the current system has been compromised.
State-owned energy company Pertamina has undertaken a restructuring within its subsidiaries and sub-holdings, appointing Chalid Said Salim as the Chief Executive Officer (CEO) of Pertamina Hulu Energi (PHE).
The Ministry of Energy and Mineral Resources (ESDM) plans to open international tenders to accelerate the development of household gas networks (jargas), which have long been stagnant.
The Ministry of Energy and Mineral Resources (ESDM) is gearing up to initiate a significant infrastructure development endeavor in Batam City, scheduled to commence in July 2024. This ambitious project involves the construction of gas networks (known as jargas) through a collaborative effort between the government and private entities under the Government-Business Partnership (KPBU) framework.
Election Supervisory Agency (Bawaslu) has brought several concerns regarding the organization and vote counting of the 2024 elections, recommending specific measures be taken in 1,496 polling stations (TPS), an equivalent to 0.18 percent of the total 820,161 TPS across the country’s 38 provinces.
An expert at the Presidential hopeful Prabowo Subianto and Gibran Rakabuming Raka team reveals that the pair has devised a plan to establish a new coordinating ministry to manage free lunch and milk program if they are officially declared winner of the 2024 presidential election.