News
Setangga SEZ Targeted to Gain Rp67.69 Trillion of Investments
WINDONESIA August 6, 2024
Map of the Setangga SEZ. (Government Regulation No. 26/2024)
President Joko "Jokowi" Widodo established the Setangga Special Economic Zone (SEZ) through Government Regulation No. 26/2024 on June 13, 2024. This 668.3 hectares SEZ is located in Tanah Bumbu Regency, South Kalimantan Province.
National SEZ Council Secretariat-General Investment, Cooperation, and Communication Bureau Acting Head Bambang Wijanarko explained that the Setangga SEZ will developed for smelting industrial activities, fractionation industry, biodiesel industry, and refineries.
The Setangga SEZ is expected to contribute to increasing national palm oil production, the iron industry, the rubber industry, as well as packaging industries such as sacks, bottles, pouches, and jerry cans to meet the packaging needs of the industries in the SEZ itself.
On top of industrial activities, the Setangga SEZ will also have supporting activities for micro, small, and medium enterprises (MSMEs) that will include business sectors related to existing industries involved in the SEZ.
In addition, the SEZ will foster research and development businesses with a mission to drive innovation, sustainability, and growth in the industrial sector while offering integrated services for companies seeking research, development, and training resources.
"With an investment realization target of Rp67.69 trillion, the Setangga SEZ is expected to be a driver of inclusive economic growth that creates broad access and opportunities for all levels of society," Bambang said in a written statement on June 18, 2024.
The Setangga SEZ was proposed by Dua Samudera Perkasa, which operates in the mining, air transportation, infrastructure and manufacturing sectors. It is planned to create up to 78,999 jobs by 2053. The SEZ is also expected to increase the added value of plantations, forestry, as well as mining and its related downstreaming industry so that it can provide a multiplier effect, especially around the SEZ.
SEZs in Indonesia have recorded a combined investment of Rp187.5 trillion and employed 126,506 workers as of March 2024. The development of SEZs is aimed to increase investment, exports, import substitution, create jobs, as well as create breakthrough models for regional development through industrial and service development.
The sectors targeted for development in SEZs are globally competitive industries, international tourism services, education and health services, as well as the digital economy.
Source: nasional.kontan.co.id