Realization of Investment Value in 11 SEZs is Rp221 Trillion

By : Aldi Firhand Alqudri | Sunday, July 23 2017 - 12:39 IWST

Tanjung Lesung special economic zone
Tanjung Lesung special economic zone - Jakarta- National Council for Special Economic Zones (KEK) recorded the realization of investment value in 11 KEK amounting to Rp221 trillion as of 30 June 2017.

"Until June 30, 2017 recorded Rp221 trillion, we expect the investment to flow to 2030 can reach Rp726 trillion," said Chairman of the Executive Team of the National Council of KEK, Wahyu Utomo, in a media crew meeting in Jakarta, Thursday (6/7/2017).

The 11 SEZs are SEZ Sei Mangkei (Rp10.8 trillion), KEK Tanjung Lesung (Rp8.2 trillion), KEK Palu (Rp328 billion), KEK Bitung (Rp2 trillion), Morotai KEK (Rp95 billion), KEK Maloy Batuta Trans Kalimantan-MBTK (Rp8 trillion), KEK Tanjung Api-Api (Rp161.7 trillion), KEK Mandalika (Rp16.2 trillion), KEK Tanjung Kelayang (Rp8.2 trillion), KEK Sorong (Rp25 billion), and KEK Arun Lhokseumawe (Rp100 billion).

KEK is an area that has gained government determination. SEZ SEP Mangkei and KEK Tanjung Lesung have been declared operational by 2015.

Meanwhile, Wahyu said the government is targeting to be able to operate 25 KEK in 2019. He projected to add 14 new KEK, with proposals being studied, among others Kuala Tanjung (North Sumatra), Galang Batang and Karimun Island (Riau Islands).

As is known, SEZ initiation is 'bottom up' or must be initiated by the proposal by private business entity, BUMN / BUMD, or cooperative. Some documents are equipped to ensure SEZ roads, eg land availability, amdal, infrastructure for the first phase already exists.

"There are many proposals, and there are certain criteria such as not mutually cannibalistic and investors must also exist to build KEK, otherwise there is no impact from SEZ status," said Wahyu.

It also encourages local governments to actively support them, for example by providing incentives.

The basic concept of SEZ is the provision of facilities on the preparation of areas whose locations have accessibility to global markets, such as access to ports and airports.

The area is given an incentive to increase competitiveness with the surrounding countries. With the increased competitiveness is expected to attract investors to invest in the region.

SEZ development becomes a breakthrough to bridge the socio-economic gap of society, the gap between regions, and build economic independence from the dominance of the export of raw materials to the national natural resources

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