TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo officially inaugurated two Special Economic Zones (SEZs) in Batam, Riau Islands, and Tangerang, Banten, on October 7, 2024. These newly established SEZs are anticipated to attract investments of approximately Rp25.7 trillion.
Secretary General of the National Council for SEZs, Rizal Edwin Manansang, stated that each economic zone has specific development focuses. “It is expected to significantly impact the economy, create job opportunities, and attract investments,” he said in an official statement on Thursday, October 10, 2024.
The BSD SEZ in Banten is an international education, technology, and health area designated through Government Regulation Number 38 of 2024. Meanwhile, the Batam Special Economic Zone is established through Government Regulation Number 39 of 2024.
PT Surya Inter Wisesa (SIW), a subsidiary of PT Bumi Serpong Damai (BSD) initially proposed the BSD Special Economic Zone. This area spans 59.68 hectares, with a target investment realization of Rp18.8 trillion upon full operation. The SEZ is expected to employ up to 13,446 workers.
The BSD SEZ will serve as an international education center with the presence of Monash University, a campus specializing in research, the digital economy, and technology development. It aims to attract 100 startups, develop integrated healthcare services, and foster the creative industry.
Meanwhile, the Batam International Health Tourism SEZ, proposed by PT Karunia Praja Pesona, has a target investment realization of up to Rp6.91 trillion with a potential employment of 105,406 people.
Coordinating Minister for Economic Affairs Airlangga Hartarto previously mentioned that this health SEZ collaborates with Apollo Hospital, an Indian hospital serving as the primary investor. The goal is to establish internationally standardized healthcare services and promote medical tourism, which is expected to be completed and operational by 2026.
Airlangga has expressed concern about the number of Indonesian citizens seeking medical treatment in neighboring countries. With the establishment of the Batam International Health Tourism SEZ, it is hoped that foreign exchange savings of up to Rp500 billion can be realized.
ILONA ESTHERINA
Editor's Choice: What to Do in Batam for 1 Day: A Guide for Singaporeans
Click here to get the latest news updates from Tempo on Google News
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.