SEZ Managers Must Actively Attract Investment in Significant Regional Economy

By : Aldi Firhand Alqudri | Sunday, July 23 2017 - 20:58 IWST

INDUSTRY.co.id - Jakarta - Coordinating Minister for Economic Affairs Darmin Nasution said the Special Economic Zone (SEZ) management body must have the ability to actively attract investment to create new growth centers in the region.

"We want to expect every SEZ to have a governing body that does have the capacity to invite investors," Darmin said in the signing of a memorandum of understanding and hand over the operationalization of government assets in Jakarta, Wednesday (05/17/2017)

Darmin said the establishment of KEK outside Java is very important to encourage investment activities evenly throughout Indonesia. To that end, the governing body has an active role for economic potential in various regions to grow rapidly.

"Do not let one area, because the governing body is not active enough, never known investors, or more negative, to wait for land prices to rise, newly formed governing body, if it happens means only 'capital gain' from the land," he said To the media crew.

Darmin said the government has provided support in the form of infrastructure development and provision of incentive facilities so that the established 11 KEK can be operated entirely and the region can grow according to the specificity they have.

"Of course there are special factors in areas that appeal to investors, such as natural conditions, which are influenced by the environment and natural conditions suitable for tourism, while Sei Mangke is a suitable area for oil palm downstream," he said.

In addition to improving the performance of economic growth, Darmin expects KEK to improve industrialization and encourage economic integration on all fronts, so that the development of this region is not inferior to neighboring countries that are currently beginning to explore the potential of the Malacca Strait region.

On this occasion, the handover of government assets in SEZ Sei Mangke from the Ministry of Industry to PT Perkebunan Nusantara III (Persero) as the governing body of the economic area was

held. With the handover it is expected that services to investors and potential investors can increase and encourage regional competitiveness.

The event was also signed the signing of a Memorandum of Understanding between the National Council of Special Economic Zones with the Chamber of Commerce and Industry (KADIN) for strengthening partnerships to accelerate development and development of SEZ and increase investment in the region.

In addition, the signing of a Memorandum of Understanding between the President Director of PT Alternatif Protein Indonesia and the President Director of PT Perkebunan Nusantara III (Persero) with a total investment worth 500 million US dollars.

The signing of this agreement was also made between the President Director of PT Indonesia Tourism Development Corporation (ITDC) as the manager of SEZ Mandalika with five investors with a total investment of Rp 2 trillion.

The five investors are PT Metro Lestari Utama for the construction of a five star hotel with an investment of Rp250 billion, Sky Wealth which is a Malaysian Company for the construction of a five star hotel with an investment of Rp450 billion, PT Bangun Megatama Wisata Mahadewi for hotel development PT Alam Hijau Permai Capital at the Pullman Hotel and Jeju Olle Foundation which is a Korean investor for the construction of the Olle Walking Trail.

Previously, the government has set 11 KEK scattered throughout Indonesia,  that is Maloy Batuta Trans Kalimantan, Sorong, Morotai, Bitung, Palu, Mandalika, Tanjung Lesung, Tanjung Kelayang, Tanjung Api-Api, Sei Mangke and Arun Lhokseumawe.

Until now, only SEZ Sei Mangke in North Sumatra is a region for downstream palm products and other plantation products and KEK Tanjung Lesung, Banten which is a tourism area, which has been operating

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