New Special Economic Zone in BSD City to Boost Health, Education, and Technology Investment

29 May 2024
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Jakarta, May 29, 2024 - The Indonesian government has approved a Kawasan Ekonomi Khusus (KEK) or new special economic zone (SEZ) in Bumi Serpong Damai (BSD), Tangerang. Coordinating Minister for Economic Affairs Airlangga Hartarto explained that KEK in BSD City would focus on developing these sectors: "The KEK has been approved. One in the BSD City area is the KEK for health, education, and technology."

The SEZ aims to attract Rp 18.8 trillion in investments in BSD City over the next 20 years. This will create approximately 13,446 jobs and boost Tangerang's GRDP by about Rp 8.45 trillion. Coordinating Minister for Economic Affairs Airlangga Hartarto announced this as part of a larger strategy, including SEZs in Batam, Riau Islands, and Morowali, Central Sulawesi.

Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, who also The Chairman of the Executive Team of the National Council for Special Economic Zones (KEK), revealed details regarding the investment targets and job creation potential of each KEK, which are newly proposed by the private sector. "The total investment projection over the next 20 years is approximately Rp 18.8 trillion, with an estimated creation of around 13,446 jobs," stated Susiwijono during an interview at his office in Jakarta on Thursday, May 30, 2024. "While the economic impact is significant, it primarily benefits the Gross Regional Domestic Product (GRDP) of Tangerang and Banten, estimated at around Rp 8.45 trillion or 3.17%," he added.

The SEZ in Batam will focus on health and tourism, collaborating with India's Apollo Hospitals. Located in Tanjung Sauh, this 840.67-hectare area was established under Government Regulation No. 24 of 2024, signed by President Joko Widodo on May 28, 2024. It aims to attract Rp 6.91 trillion in investments and create 105,406 jobs.

The Morowali SEZ, spanning 1,077.6 hectares, will concentrate on nickel production, logistics, distribution, and energy development. This zone is projected to draw Rp 135.38 trillion in investments and generate 136,000 jobs, with involvement from PT Vale Indonesia.

These special economic zones, funded through private investments, provide various facilities and incentives to attract domestic and foreign investors, such as duty-free imports for the health sector. The government's strategic initiative aims to decentralize economic development and support national economic equality.