Government to Launch Four New Special Economic Zones Worth Rp 161 Trillion

Arnoldus Kristianus
July 23, 2024 | 9:32 am
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President Joko “Jokowi” Widodo promoted Mandalika in Central Lombok, West Nusa Tenggara, through a video blog during his visit to inaugurate Mandalika Special Economic Zone, on Friday (22/10). (Photo courtesy of the Tourism Ministry)
President Joko “Jokowi” Widodo promoted Mandalika in Central Lombok, West Nusa Tenggara, through a video blog during his visit to inaugurate Mandalika Special Economic Zone, on Friday (22/10). (Photo courtesy of the Tourism Ministry)

Jakarta. The government is set to inaugurate four new Special Economic Zones (SEZ) with a total investment of Rp 161 trillion ($10 billion) in Batam, Sulawesi, and Bumi Serpong Damai (BSD) in South Tangerang.

Acting Secretary-General of the National Council for SEZ, Rizal Edwin, said that government regulations (PP) are being prepared to officially establish these zones. "The approval is in place, but we need a PP signed by the President to formalize them. The total investment is Rp 161 trillion," Rizal said during a media session in Jakarta on Monday.

The four new SEZs include:

  • SEZ Nipa in Batam, Riau Islands, focusing on logistics and energy development.
  • SEZ Edutek Medika Internasional Banten in BSD, South Tangerang, focusing on research, digital economy, and educational, health, and creative industries.
  • SEZ International Health Tourism in Batam, focusing on health tourism.
  • SEZ Bungku Green Industry in Morowali, Central Sulawesi, engaging in logistics and energy production and processing.

Since the establishment of SEZs in 2012 until mid-2024, investments have reached Rp 205.2 trillion, creating around 132,227 jobs. "This year, from a target of Rp 78.1 trillion, Rp 31.4 trillion has been realized, achieving 40 percent of the target," Rizal added.

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For 2024, the government aims to absorb 38,953 workers, but only 39 percent (about 15,229 workers) have been employed by mid-year. Currently, there are 22 SEZs with 368 business operators.

Additionally, the government has received proposals for seven new SEZs from domestic businesses, including one in the Nusantara Capital (IKN) area. These proposals are under review.

The proposed SEZs in Nusantara will focus on energy provision and mining activities. Rizal assured that these seven proposals have attracted significant investor interest, both domestic and international, aiming to be regional economic hubs, providing energy, and processing mining outputs like nickel, bauxite, and coal for Nusantara.

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