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National SEZs Council Approves Six New SEZs and Nongsa SEZ Expansion
WINDONESIA October 11, 2024
Aerial photo of the Patimban Port development area Phase 1-2 in Subang Regency, West Java on Aug. 31, 2023. (Bisnis Indonesia/Rachman)
The National Special Economic Zones (SEZs) Council has approved the proposal to establish six new SEZs and the expansion of the Nongsa KEK in Batam. With a total investment target of up to nearly Rp1.09 quadrillion, the SEZs' development and expansion is expected to create more than 1.4 million jobs.
"All of these SEZ proposals will soon have their regulations prepared, and we are targeting their related Government Regulations (PP) to be completed by the second week of October 2024," Coordinating Economic Minister Airlangga Hartarto said in an official statement issued in Jakarta on Sep. 26, 2024.
The first of the new SEZs is the Sidoarjo Halal Industry SEZ in Sidoarjo Regency, East Java Province. With a land area of 796.65 hectares (ha), the area is designed to support the development of halal products-focused manufacturing, logistics, and distribution. The SEZ's investment realization target is Rp97.8 trillion by 2054, and it is also targeted to create 317,670 jobs. The area was proposed by Makmur Berkah Amanda.
Second, Batuta Chemical Industrial Park (BCIP) submitted a proposal to establish the BCIP SEZ in East Kutai Regency, East Kalimantan Province. Business activities at this 748.9 ha SEZ will include production and processing for coal gasification and ammonium nitrate diesel, their logistics and distribution, as well as energy development. The BCIP SEZ is targeted to create 432,964 jobs and has an investment realization target of Rp61.51 trillion by 2054.
Third, the Patimban SEZ in Subang Regency, West Java Province, which is designed to encompass the production and downstream processing for petrochemicals, electric vehicle (EV) batteries, and semiconductors as well as their logistics, distribution, and energy development. The 511 SEZ was proposed by Wahana Mitra Semesta. Its investment realization target is Rp141.6 trillion by 2054, and it is expected to create 156,154 jobs.
Fourth, and also in Subang Regency, is the Subang SEZ that will encompass electric car manufacturing, logistics, and distribution. The 481.93 ha SEZ was proposed by Aneka Bumi Cipta. Its investment realization target is Rp134.59 trillion, and it is also targeted to create 95,139 jobs. EV company BYD Auto Indonesia is the SEZ's anchor investor.
Fifth, the Mangkupadi SEZ located in Bulungan Regency, North Kalimantan Province, proposed by aluminium smelter Kalimantan Industrial Park Indonesia (KIPI) that will focus on renewable energy production, processing, logistics, and distribution. KIPI is also the SEZ's anchor investor. The 11,696.53 ha SEZ is targeted to create 140,796 jobs and reach Rp504 trillion of realized investment.
Sixth, the Batang Integrated Industrial Zone (KITB) SEZ located in Batang Regency, Central Java Province proposed by Kawasan Industri Terpadu Batang (KITB) which will focus on manufacturing, logistics, distribution, as well as tourism development. The project's anchor investors are KCC Glass Indonesia, Yih Quan Footwear Indonesia, and Wavin Manufacturing Indonesia. The 2,886.87 ha KITB SEZ is targeted to create 325,651 jobs and reach Rp20.07 trillion of realized investment.
The government has also identified the need for an efficient and environmentally friendly data center, along with the increasing demand for digital services worldwide. Hence the Nongsa SEZ in Batam City, Riau Islands Province is proposed by Taman Resor Internet to be expanded to 22.43 ha for the development of a data center. The project, which focuses on technological research and development as well as tourism, has an target investment realization of Rp20.07 trillion.
Source: www.cnnindonesia.com