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Investment in 11 Special Economic Zones reaches Rp 221 trillion

The Special Economic Zones (KEK) National Council has recorded that the total investment in 11 KEK across the country reached Rp 221 trillion (US$16.49 million) as of June 30.

“We hope the investment will reach Rp 726 trillion by 2030,” said chairman of KEK National Council’s implementation team Wahyu Utomo in Jakarta on Thursday as quoted by Antara.

The 11 KEKs include Kek Sei Mngkei, KEK Tanjung Lesung, KEK Palu, KEK Bitung, KEK Morotai KEK Maloy Batuta Trans Kalimantan-MBTK, KEK Tanjung Api-Api, KEK Mandalika, KEK Tanjung Kelayang, KEK Sorong and KEK Arun Lhokseumawe.

The government expects to operate 25 KEKs in 2019, said Wahyu, adding that the next KEKs would include those in Kuala Tanjung in North Sumatra, Galang Batang and Karimun Island (Riau Islands).

The development of KEKs is based on proposals from private business entities, state owned enterprises or province-owned enterprises or cooperatives. “We have received many proposals, but there are certain criteria that have to be fulfilled,” Wahyu said.

The local governments are expected to actively support the initiatives, by offering incentives, he added.

KEKs offer business infrastructure to investors that provide access to global markets, such as ports and airports.

The area is given incentives to increase competitiveness with surrounding countries and expected to attract investors to the region. (dis/bbn)

Source: Jakarta Post