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Johor-Singapore SEZ won’t affect Batam, Bintan, govt says
A senior minister has downplayed concerns over potential negative impacts from the newly planned JS-SEZ, Southeast Asia's first cross-border economic zone, saying that Indonesia was game for competition.
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A freight ship sails the Singapore Strait opposite Batam Island on May 2, 2020. (AFP/Roslan Rahman)
T
he government has expressed confidence that the planned Johor-Singapore special economic zone (SEZ) will not disrupt either the Batam or Bintan SEZs in Riau Islands province, which borders both Malaysia and Singapore.
An SEZ is a strategic area designated as an economic growth center that is typically equipped with state-of-the-art facilities to attract foreign direct investment, boost exports and generate many jobs, and is generally subject to unique trade and business regulations.
Coordinating Economic Affairs Minister Airlangga Hartarto said he was not concerned about the planned Johor-Singapore SEZ, asserting that Indonesia was both willing and ready to compete.
“[Economic and business] competition is normal. Malaysia and Singapore can create their SEZs, and so can other countries. Our SEZs must be competitive,” Airlangga said on Thursday, as quoted by Bisnis.com.
Read also: Govt grants Sinarmas-backed BSD special economic zone status
Indonesia’s SEZs have been granted a variety of fiscal incentives, including yearslong corporate tax reductions as well as import tax and duty exemptions. Certain SEZs are also eligible for additional incentives related to tourism, as well as customs and excise benefits.
SEZs also promise greater ease of doing business through land permit leeways, no export obligations, 80-year land concessions and foreign property ownership rights, as well as other benefits.
