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 47 selected industrial estates, as follow:
Special Economic Zones (SEZ) is a breakthrough model designed by Government in order to accelerate economic development by encouraging new economic growth centre with high competitiveness. Ensure the effectiveness of natural resources management and utilization. There are some incentives and facilities in investing in SEZ.
SEZs are established and developed based on demographic potential, and their accessibility to global market. To attract more investment, manage industry, export-import, and other economic activities with high-scale economic value and global competitiveness, as well as create a wide-range quality of jobs.
11 Existing SEZs (May 2017):
• Sei Mangkei SEZ
• Tanjung Lesung SEZ
• Tanjung Api-Api SEZ
• Morotai SEZ
• Mandalika SEZ
• Palu SEZ
• Bitung SEZ
• Maloy Batuta Trans Kalimantan (MBTK) SEZ
• Tanjung Kelayang SEZ
• Sorong SEZ
• Arun-Lhokseumawe SEZ
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).