Indonesia, as the largest economy in Southeast Asia and one of the emerging market economies of the world, continuously improves its position to be one of the principals for cost-efficient and attractive investment location in the global economy. The Government of Indonesia (GoI) encourages the development of economic zones that aims to control the use of space, increase efforts of environmentally sound economic development, accelerate the growth and improve the competitiveness of investment, and provide certainty in the planning and construction of infrastructures in support of economic development and investment. Indonesia focuses on its programs to localize investments into economic zones spreading across Indonesia’s islands.
In this regard, following up the economic policy package II issued on 29 September 2015 regarding the acceleration and simplification of investment licensing services in Industrial Estate, Indonesia has applied Direct Construction facility, so-called KLIK, in 48 selected industrial estates, as follow:
1. Kendal Industrial Park
2. Bukit Semarang Baru Industrial Park (BSB)
3. Wijaya Kusuma Industrial Park
4. Java Integrated Industrial and Port Estate (JIIPE)
5. Bantaeng Industrial Park (KIBA)
6. Wilmar Integrated Industrial Estate (KITW)
7. Modern Cikande Industrial Estate (MCIE)
8. Krakatau Industrial Estate Cilegon (KIEC)
9. Bekasi Fajar Industrial Estate (BFIE)
10. Delta Silicon 8 Industrial Park
11. Karawang International Industrial City (KIIC)
12. Suryacipta City of Industry (SCI)
13. GT Tech Park
14. Medan Industrial Park (KIM)
15. Artha Industrial Hill
16. Greenland International Industrial Center (GIIC)
17. Jababeka Industrial Estate Phase III
18. Kota Bukit Indah Industrial City
19. Indotaisei Kota Bukit Indah Industrial City
20. Jatengland Industrial Park Sayung (JIPS)
21. Maspion Industrial Estate
22. Tuban Industrial Estate
23. Batamindo Industrial Park
24. Bintang Industrial Park II
25. Kabil Integrated Industrial Estate
26. West Point Maritime Industrial Park
27. Dumai Industrial Park
28. Kariangau Industrial Estate
29. Kawasan Berikat Nusantara (KBN)
30. Jakarta Industrial Estate (JIEP)
31. Marunda Center International Warehouse and Industrial Estate
32. Bintan Inti Industrial Estate Lobam
33. Millenium Industrial Estate
34. East Jakarta Industrial Park (EJIP)
35. Bekasi International Industrial Estate
36. MM 2100 Industrial Town
37. Kawasan Industri Terpadu Indonesia China (KITIC)
38. Kujang Cikampek Industrial Estate
39. Lion Industrial Park
40. Cibinong Center Industrial Estate
41. Rancaekek Industrial Estate
42. Tanjung Emas Export Processing Zone (TEPZ)
43. Safe N Lock Warehouse and Industrial Complex
44. Tanjung Buton Industrial Park
45. Padang Industrial Park
46. Makassar Industrial Estate (KIMA)
47. Piyungan Industrial Estate
48. Karawang New Industry City
The basic concept of Indonesia SEZ is the preparation of areas which have accessibility to the global market (access to the sea port and or airport). The areas are designed to maximize industrial activities, export, import and other related activities which has high economic value. Furthermore, the areas are given certain facilities and incentives in order to increase the competitiveness among the countries nearby. Both the increasing competitiveness and the incentives are expected to be the pull factors to attract investors to the region.
Indonesia Special Economic Zones are directed to fulfill the achievement of The National Priority Development Agenda:
Development Objectives of Special Economic Zones:
This zone is where regional labor wages are very relatively cheap, so this economic zone is suitable for establishing production units with relatively large use of labor. This economic zone will be very profitable in terms of production costs by considering lower labor wages, low facility costs, land acquisition costs for the manufacturing industry are also low.
The region that includes the low-cost economic zone is :
1. Brebes region
2. Tegal region
3. Pemalang region
4. Cilacap region
5. Solotiga region
The government has big plans for tourism in Indonesia. But for the tourism sector to be a major contributor to the economy, large investments are needed to accelerate the process. The government has listed 10 priority tourism destinations for development, which are Danau Toba (North Sumatera), Kepulauan Seribu (DKI Jakarta), Borobudur (Central Java), Bromo Tengger Semeru (East Java), Labuan Bajo (East Nusa Tenggara) and Wakatobi (South East Sulawesi), Tanjung Kelayang (Bangka Belitung), Tanjung Lesung (Banten), Mandalika (West Nusa Tenggara) and Morotoi (North Maluku).
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