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The Indonesian government has projected that two new special economic zones (SEZ) in West and East Java would attract US$19.3 billion in investments, and thus support the business ecosystem in those regions. The new economic zones are Lido in West Java and Java Integrated Industrial and Port Estate (JIIPE) in Gresik, East Java.
“The Lido special economic zone is expected to be able to boost tourism in Indonesia. The result must be clear, tourists to West Java must also be of international quality,” said Coordinating Minister for Economic Affairs, Airlangga Hartarto, who is also chairman of the KEK National Council, in Jakarta on Thursday. The Lido SEZ is projected to attract investments of up to US$2.4 billion and absorb 29,545 workers in its 20th year, he said.
The JIIPE SEZ is expected to bring in investments of US$16.9 billion and employ 199,818 people once it is fully operational, he said. The Lido SEZ will be developed as a tourism project with attractions such as a world-class theme park, golf courses, and retail and dining facilities, he noted. It will also have six-star luxury resort accommodations, film studios, and music festivals, he added.
The presence of a theme park in Lido is expected to increase the number of domestic and foreign tourists to 63.4 million visitors by 2038, or an average of 3.17 million tourists per year. According to Hartarto, foreign exchange flows from foreign tourists as well as foreign exchange savings from domestic tourists could reach US$4.1 billion over 20 years.
Meanwhile, at JIIPE, there are plans to develop businesses in the metal, electronics, chemical, energy, and logistics industries, he said. JIIPE is expected to contribute exports valued at US$10.1 billion per year once it is fully operational, as well as import substitution for metal and chemical industrial products, he said. The two SEZ proposals, which have been approved, will be recommended to President Joko Widodo.
Indonesia so far has developed 15 SEZs. They comprise nine industrial SEZs and six tourism SEZs in Arun, Lhokseumawe, Aceh; Sei Mangkei, North Sumatra; Tanjung Api-Api; South Sumatra, Galang Batang, Riau Islands; Tanjung Kelayang, Bangka Belitung Islands; Tanjung Lesung, Banten; Mandalika, NTB; Maloy Batuta Trans East Kalimantan; Palu, Central Sulawesi; Bitung, North Sulawesi; Morotai, North Maluku; Sorong, West Papua; Singhasari, East Java; Likupang, North Sulawesi; and Kendal, Central Java.
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