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Indonesia's SEZs draw Rp 177 trillion investment and create 117,000 jobs

Jakarta Globe - January 19, 2024

Arnoldus Kristianus, Jakarta – The development of 20 Special Economic Zones (SEZs) across various regions in Indonesia has attracted investments totaling Rp 177.5 trillion ($11.36 billion) and created job opportunities for 117,492 individuals involving 331 companies in 2023.

"Overall, investments in SEZs have made a positive contribution to the regional and national economy, with a growth trend that has been consistently increasing from 2019 to 2023," said Susiwijono Moegiarso, the Secretary of the Coordinating Ministry for Economic Affairs and also the Acting Secretary-General of the National SEZ Council, in Jakarta on Thursday.

Throughout 2023, there was a significant increase with an additional investment of Rp 66 trillion from the year before, an additional workforce of 57,005 individuals, and a growth in the number of companies/industries by 89. For 2024, the SEZs are targeting an additional investment of Rp 77.5 trillion and an additional workforce of 38,277 people.

Last December, the council gave its nod for the creation of three new SEZs, namely Setangga SEZ, Tanjung Sauh SEZ, and Nipa SEZ.

Setangga SEZ, covering an area of 668.3 hectares, targets an investment of Rp 67.69 trillion and is proposed by Dua Samudera Perkasa. Positioned in Tanah Bumbu Regency, South Kalimantan, this SEZ is poised to elevate value-added activities in agriculture, forestry, and mining.

Tanjung Sauh SEZ, put forth by Batamraya Sukses Perkasa, pledges an investment of Rp 199.6 trillion and anticipates employing 366,087 individuals by 2053. This SEZ concentrates on advancing the electronic component industry, assembly industry, and heavy industry, as well as the establishment of power plants and solar panels, serving as a pivotal industrial and logistics nexus connecting Batam and Bintan.

Nipa SEZ in the Batam region, Riau Islands, envisions a business strategy revolving around cargo trading and bunker trading, with a targeted investment of Rp 16.46 trillion and an envisaged workforce of 40,949 for 50 years.

Source: https://jakartaglobe.id/business/indonesias-sezs-draw-rp-177-trillion-investment-and-create-117000-job