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:
The Special Economic Zone (SEZ) is a breakthrough designed by Indonesian Government to accelerate the economic development by encouraging a new economic growth center with high competitiveness. So far the Special Economic Zone (SEZ) has been developed in various regions in Indonesia, based on the demographic potential and accessibility of the region to global markets. SEZs are aimed to attract more investment, manage the industry, export-import, and other economic activities with high-scale economic value and global competitiveness, and create a broad quality of work.
The Indonesian government has targeted to create 17 SEZ regions by 2019, to achieve the government’s goal, which is to make SEZs as a new center of growth. The SEZs to be developed is planned to be divided into 2 major sectors, namely as many as 10 regions are planned for the tourism sector which is developing rapidly in recent years. While 7 other areas for various sectors, ranging from the mineral industry to the fishing industry.
Until August 2018, there are 12 regions that are registered as SEZs, which are:
• SEZ 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 Galang Batang
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).