Indonesian Special Economic Zones About Basic Concept The basic concept of SEZ in Indonesia is the preparation of a particular area that has accessibility to global market (access to seaport and/or airport). This area will be given certain incentives to attract investors in order to compete among others. Definition (according to the Law of Indonesia No.39/2009 regarding Special Economic Zone) Special Economic Zone is an area with certain boundaries within the territories of the Republic of Indonesia, and is designated to carry out the economic function and are granted certain facilities and incentives.
Special Economic Zone shall be developed by first preparing areas having geo-economic and geo-strategic advantages and serving to accommodate manufacturing activities, export, import, and other economic activities with high economic value and international competitiveness. Special Economic Zone Location Criteria :
? Appropriate with the Regional Spatial Plan, and will unlikely damage the conservation area. ? Local government support
? Close to international trading hub or near international ship channel in Indonesia, or had a primary resources
? Have a clear boundaries Special Economic Zone Central Incentives Accessibility to Global Market Local Incentives Advantages of Indonesian SEZ Lisencing Service One Stop Integrated Services Authority delegation to SEZ administrator Land Easiness Easy Process to get the land rights Employment Provision & Easiness Special regulation (wage council, tripartite institution, Trade/Labor Unions to create effective communication) Foreign workers permit for directors and managers Provision of skill labor Negative Investment List Open business sectors with some investment prerequisite shall not apply, except for SME and Cooperatives Migration & Visa Visa & Immigration services Extended stay duration on Visa Additional Free Vise Countries Regional Infrastructure Provision Integrated Facilities and Incentives from Central and Local Government Priority to SEZ infrastructure regional development Commitment to infrastructure regional provision Action plan for infrastructure regional development Government Support on Regional Infrastructure Fiscal Incentives Import Duties for machinery and raw material during construction and beginning of operation Income Tax ? Investment Allowance or Tax Holiday Export Oriented Industry ? Import Duties and value added tax Indonesian SEZ Overview Sei Mangkei Special Economic Zone Sei Mangkei has the status of Special Economic Zone (SEZ) for industrial, logistic and tourism sectors.
Sei Mangkei SEZ launched by the government of Indonesia in 2012 and has declared ready for operation by President Jokowi in 2015. With the total area of 2,002.77 ha, Sei Mangkei SEZ is located in Simalungun Regency, North Sumatera (3 hours from Kualanamu International Airport). Sei Mangkai SEZ is managed by PT Perkebunan Nusantara III, a state owned enterprise which has more than 50-year experience in plantation industry.
Sei Mangkei SEZ is the first area designed by the Government as the centre of integrated palm oil industry with its derivative products in Sumatera Economic Corridor. SEI MANGKEI OVERVIEW Total Area 2002 Ha Business Sector Palm oil processing, Logistics, and Tourism On-Site Infrastructure Road, electricity, water resources, innovation technology, WTP, WWTP, gas pipeline Regional Infrastructure Road, electricity, railway, Kuala Tanjung Seaport, Kualanamu Airport Land Status 2002 Ha land acquired ; stage 1 development 104 Ha Tanjung Lesung Special Economic Zone Tanjung Lesung is a Special Economic Zone (SEZ) in tourism sector, which is launched by the government of Indonesia in 2012 and has declared ready for operation by President Jokowi in 2015.
Tanjung Lesung SEZ is also one of the 50 national tourism destinations stipulated by the Ministry of Tourism and Creative Economy of the Republic Indonesia. Tanjung Lesung SEZ is located in Pandeglang, Banten, a part of the western region of the Sunda strait (170km from Jakarta). With total area of 1,500 ha, it offers natural beauty, panoramic views and other tourism attractions. Tanjung Lesung SEZ is managed by PT. Banten West Java, a subsidiary of PT JABABEKA, Tbk, which has more than 20 year experience in township development including the Flagship City Jababeka project in Cikarang, west Java, Indonesia. TANJUNG LESUNG OVERVIEW Total Area 1500 Ha Business Sector Tourism On-Site Infrastructure Road, electricity, water resources, WTP, WWTP Regional Infrastructure Road, cruise seaport, airstrip Land Status 1430 Ha land acquired ; stage 1 development 100 Ha Mandalika Special Economic Zone Mandalika is a place of natural and cultural preservation, and is one of the most beautiful places in the world.
A place where local arts and culture acculturated, such a prefect place for discovering Lombok. This area provide for MICE purpose, leisure spot, luxury lodging, and unique products from some region in Central Lombok. It has excellent tourist attraction on the island of Lombok: 7.5 km white sand beach of the Indian Ocean, and various local attractions nearby to the Mandalika. With the total area of 1.250 ha, it offers natural beauty, panoramic view, and many other attractions. Mandalika SEZ is managed by Indonesia Tourism Development Corporation (ITDC), a state owned enteprises with more than 20 years experience in developing tourism region.
MANDALIKA OVERVIEW Total Area 1035 Ha Business Sector Eco-Tourism and Agro-Industry On-Site Infrastructure Road, electricity, WTP, WWTP Regional Infrastructure Road, electricity, water resources, Lombok International Airport Land Status 1035 Ha land acquired ; stage 1 development 612 Ha Palu Special Economic Zone SEZ Palu is the first special economic zone in Indonesia which is located in the strategic trading channel in Sulawesi. With Panto Loan Seaport located in the Palu Strait, Palu SEZ is a very strategic integrated logistics zone. It provides various industrial types such as manufacturing that consist of vehicles element and assembling, then mining which includes processing and purifying minerals, then agro industry that includes seaweed, rattan, and cocoa processing. The last one is logistic area in warehousing and packaging activity. With the total area of 500 ha, Palu SEZ is located in Palu Bay, Central Sulawesi Province. Palu SEZ is managed by the government of Palu city.
Add to this, Palu SEZ is the first area designted by the government as the centre of integrated logistics and mining processing industry in Sulawesi Economic Corridor. PALU OVERVIEW Total Area 1500 Ha Business Sector Mining industry, cacao processing, rubber, rattan, seaweed, heavy equipment manufacturing, and logistic On-Site Infrastructure Road, electricity, WTP, WWTP Regional Infrastructure Road, Tendeki Water Resources, Pantoloan Seaport, Mutiara Airport, Power Plant Land Status 187 Ha land acquired ; stage 1 development 100 Ha Bitung Special Economic Zone Bitung SEZ id the Special Economic Zone (SEZ) for fishery, coconut industry, and logistic support in East Indonesia which was newly launched by the Government of Indonesia in 2014. North Sulawesi is the 3rd largest coconut producer in Indonesia (270 thousand tonnes on 2013) and 5th largest fisheries producer in Indonesia (281 thousand tonnes on 2012). With the total area of 534 ha, SEZ Bitung is loated in Tanjung Merah Bitung Village, North Sulawesi Province. Bitung SEZ is managed by the provincial government of North Sulawesi. Bitung SEZ area is designated by the Government as the centre of fishery, distribution, and logistic in Sulawesi Economic Corridor. BITUNG OVERVIEW Total Area 534 Ha Business Sector Fishery processing industry, Coconut processing, and logistic On-Site Infrastructure Road, electricity, WTP, WWTP Regional Infrastructure Manado Bitung Toll Road, Bitung Seaport, Sam Ratulangi Airport Land Status 114 Ha land acquired ; stage 1 development 114 Ha Morotai Special Economic Zone Morotai SEZ has the status of Special Economic Zone (SEZ) for fisheries, logistics, and tourism which has newly launched by the government of Indonesia in 2014.
Morotai is strategically located in the Halmahera group of eastern Indonesia’s Maluku islands, which is 3 hours flight from Singapore and Taipei. With the total area of 1,101.76 ha, Morotai SEZ is located in Morotai Island, North Maluku province. Morotai SEZ is managed by PT Jababeka, Tbk. which has more than 20 years experience in township development including the flagship Jababeka City. Maluku and North Maluku are the largest fisheries producers in Indonesia (688 thousand tonnes in 2012). Morotai is a potential area for marine tourism and historical attractions of World War.
MOROTAI OVERVIEW Total Area 1101 Ha Business Sector Fisheries, Logistic, and Tourism On-Site Infrastructure Road, WTP, WWTP Regional Infrastructure Road, electricity, water resources, Daruba Seaport, Leo Wattimena Airport Land Status 200 Ha land acquired ; stage 1 development 200 Ha Tanjung Api-Api Special Economic Zone Tanjung Api-Api SEZ has the status of Special Economic Zone (SEZ) for export processing, logistic, industry, and energy which was newly launched by the government of Indonesia in 2014. South Sumatera is the largest Rubber Producer in Indonesia (569 thousand tons on 2013), 4th largest Crude Palm Oil Producer in Indonesia (2,492 thousand tonnes on 2013), 2nd largest coal deposit in Indonesia (12,104 million tonnes or 39% from national reserves on 2013) and has 10% of national reserves on gas. With the total area of 2,030 Ha, SEZ Tanjung Api-Api is located in Palembang, South Sumatera Province. SEZ Tanjung Api-Api is managed by the government of South Sumatera Province.
SEZ Tanjung Api-Api is the first area designed by the Government as the centre of integrated rubber, palm oil, and coal industry. TANJUNG API-API OVERVIEW Total Area 2030 Ha Business Sector Coal processing and its derivatives, rubber, petrochemical, and palm oil On-Site Infrastructure Road, electricity, WTP, WWTP Regional Infrastructure Road, electricity, water resources, Tanjung Api-Api Seaport, SMB II Airport Land Status stage 1 development 217 Ha Maloy Batuta Trans Kalimantan Special Economic Zone Maloy Batuta Trans Kalimantan (MBTK) SEZ has the status of Special Economic Zone (SEZ) for export processing, logistic, and industry which was newly launched by the government of Indonesia in 2014.
With the total area of 1035,67 ha, MBTK SEZ is located in East Kutai, East Kalimantan Province. East Kalimantan is the 7th largest crude palm oil producer in Indonesia (1,298 thousand tons on 2013), and has the largest coal deposits in Indonesia (14,015 million tons or 45% of the national reserves). Managed by the government of East Kalimantan Province, MBTK SEZ is the first area designed by the Government as the centre of industry, export, and logistic.