The Central Bangka regency has been developing the Tanjung Gunung Special Economic Zone (KEK) to provide tourism facilities in the region worth IDR17.99 billion in 2019. The project is part of the Investment Coordinating Board (BKPM)’s 47 potential regional investment projects.
Central Bangka as a regency was established in 2003 and is part of the Bangka Belitung province. The region directly borders Pangkalpinang city, Bangka regency and South Bangka regency. Central Bangka has a size of 2,269.03 square kilometers (sqm) with a population of 192,429. Most of the residents are Muslims, which accounts for 86.99%.
The BKPM is a government agency in charge of implementing policy and service coordination in the investment sector in accordance with the regulations. The agency was founded in 1973 and has been led by Investment Minister Bahlil Lahadalia since 2021.
Tanjung Gunung KEK
The Tanjung Gunung KEK was established in 2019 worth IDR 17.99 billion with an interest rate of return (IRR) of 32.97%, net present value (NPV) of IDR25.02 billion and a payback period of 3.68 years.
Former Bangka Belitung Governor Erzaldi Rosman Djohan, who served from 2017-2022, had said earlier that he hoped the Tanjung Gunung and Sungai Liat special economic zones could be established soon. He revealed that as part of Indonesia’s independence, the establishment of these 2 KEKs would be a present for Bangka Belitung.
“The economic recovery must begin immediately whereas the desire of investors to develop Tanjung Gunung and Sungai Liat special economic zones should be welcomed. Moreover, the local administration has been directed to generate tourism,” current acting governor Ridwan Djamaluddin – who previously served as Deputy for Infrastructure and Transportation Coordination at the Coordinating Maritime Affairs and Investment Ministry – said on July 16, 2022.
Since 2019, the investment has been smooth, reaching 76% or around IDR5 trillion, according to then Tourism Minister Arief Yahya. “Incoming investors are Sheraton, Sofitel and MGallery [hotel chains]. It is hoped that the construction will be completed in August 2019,” he said in a press release on March 15, 2019.
The location of Tanjung Gunung KEK, which is around 385 hectares, is in close proximity to Dipati Amir Airport or 7 kilometers away.
Challenges for Tanjung Gunung
In 2019, the Tanjung Gunung KEK faced a problem related to mining activities in the area. Around 200ha of the 385ha of the special economic zone is still part of the tin mining area.
However, earlier in 2019, there was a written agreement with state-owned tin mining company PT Timah to not mine in the area anymore.
On the other hand, the regency had crucial problems since 2018 especially on the availability of clean water. “Infrastructure of roads and clean water are necessary,” Djohan said on November 5, 2018.
