President Joko “Jokowi” Widodo’s decade-long leadership has spurred the massive development of Indonesia’s special economic zones which have given the country a major economic boost.
Indonesia today has dozens of SEZs — namely areas that the government wishes to turn into new centers of economic growth — spread across the archipelago.
The government also grants incentives such as corporate income tax deductions and easier permits for companies who plan on investing in these SEZs. These SEZs are also not only open to manufacturing companies, but some of these zones are focused on tourism.
North Sumatra’s Sei Mangkei SEZ — home to palm oil and rubber processing industries — was among the first ones to gain SEZ status in 2012. It became the first SEZ that Jokowi launched in January 2015.
Earlier this month, Jokowi launched two new SEZs, including the Banten International Education, Technology, and Health SEZ, just a few weeks before his retirement.
This economic zone is expected to post around Rp 18.8 trillion ($1.2 billion) worth of investments once it is fully operational.
Jakartaglobe
