Indonesia plans to establish 7 to 9 new economic zones over the next four years as part of its strategy to attract more investment and drive economic growth, according to Coordinating Minister for Economic Affairs, Airlangga Hartarto.
Speaking at the 2024 Indonesia Special Economic Zone Business Forum in Jakarta, Airlangga emphasized that the experience of several Asian countries demonstrates that special economic zones (SEZs) are effective in promoting economic growth.
Indonesia began developing SEZs after the passage of the Special Economic Zone Law in 2009. Currently, the country has 24 SEZs, which include 12 manufacturing zones, 8 tourism zones, and 4 service-oriented zones.
According to Airlangga, in the first three quarters of 2024, Indonesia's 24 SEZs attracted a total of 394 enterprises, bringing in new investments worth IDR 242.5 trillion (approximately USD 15.3 billion) and creating 151,000 new jobs.
To further attract investors, the Indonesian government plans to offer a range of fiscal incentives, including exemptions on value-added tax (VAT), luxury goods tax, import duties, and reductions in local taxes. Airlangga noted that the government will continue to push for the implementation of fiscal and non-fiscal incentives to create a more attractive investment environment.