Joss! Until June 2024, KEK Will Absorb IDR 205.2 T in Investment and Absorb 132,227 Workers

JAKARTA – The government’s efforts to encourage economic transformation through the development of Special Economic Zones (KEK) are starting to bear fruit. Until the first semester of 2024, KEK has successfully recorded a cumulative investment realization of IDR 205.2 trillion from 22 areas with a cumulative workforce absorption of 132,227 people.

The development of SEZs is also carried out to achieve Indonesia’s target as a High Income Country while realizing the Vision of Golden Indonesia 2045. SEZ policies have an important role in increasing investment so that they can contribute to equitable regional development. Through the positive achievements of SEZs, the Government is increasingly optimistic that Indonesia will be able to achieve economic growth of 5% with great wealth and potential supported by efficient policies.

“Policies such as Special Economic Zones can accelerate development and are vital for our nation’s economic growth,” said President-elect/Defense Minister Prabowo Subianto in a press statement, Saturday (7/20/2024). Prabowo expressed this in his direction at the launch of the OMP 2.0 Geoportal and the OMP Beyond 2024 White Paper, as well as the Submission of the PSN & KEK Achievement Report on July 18, 2024 in Jakarta.

Prabowo added that KEK is expected to have a major impact on improving the national and regional economy. The achievement of significant investment realization cannot be separated from the role of the government through incentive policies that have been proven to attract investors both domestically and abroad.

“In an uncertain geopolitical and geoeconomic situation, competition between countries is very tight so that the country that can provide certainty and the most efficient business climate will attract investment,” said Prabowo, who was present representing President Joko Widodo.

On the same occasion, Coordinating Minister for Economic Affairs Airlangga Hartarto as Chairman of the National Council of Special Economic Zones said that with this achievement, the government is confident that Special Economic Zones will be able to meet investment targets by the end of 2024. Airlangga is also confident that Special Economic Zones can also provide a multiplier effect to the community around the area.

He emphasized that several SEZs have contributed significantly and given positive impacts to the regional economy, through labor absorption, support for MSMEs, infrastructure growth, and others. “This is in accordance with the objectives of SEZ development, namely increasing investment, exports and import substitution, job creation, and the establishment of breakthrough models for regional development through the development of industry, tourism, and other services,” he said.

Therefore, he continued, the SEZ targets globally competitive industries, international tourism services, education and health services, and the digital economy. Among all SEZs, there are 3 SEZs that recorded milestones in this period.

“There are milestones recorded by business actors in the SEZ, including the Commissioning of PT Freeport Indonesia in the Gresik SEZ, then the Commissioning of the Data Center in the Nongsa SEZ in September 2024 and the Issuance of permits and lecture simulations for King’s College London in the Singhasari SEZ,” explained Coordinating Minister Airlangga.

At the event, the Special Economic Zone Performance Achievement Report was also submitted to the President-Elect/Minister of Defense. In addition, appreciation was given to the SEZ with the best achievements, namely the best Industrial SEZ by SEZ Gresik and SEZ Mandalika with the best service SEZ.

(fjo)