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Celebrating RI’s Independence Day in Kendal to build optimism for SEZs
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(Photos courtesy of Coordinating Ministry for Economic Affairs Republic of Indonesia)
T
hrough the Indonesia Emas (Golden Indonesia) 2045 vision, Indonesia is committed to becoming an advanced and high-income country with income per capita above US$30,000 and a place as one of the world’s top five most powerful economies, with a gross domestic product (GDP) of US$10 trillion.
Entering the peak of the demographic bonus period, Indonesia will seize this opportunity to drive the national economy forward to exit the middle-income trap. In its 78 years, Indonesia has experienced changes, challenges and transformation. As a country that in the past put emphasis on agriculture and its natural resources sector, Indonesia has evolved into a country with diversified superior economic sectors, such as manufacturing, services and technology.
In celebrating the 78th anniversary of Indonesia’s Independence, the secretary-general of the National Council (Denas) for special economic zones (SEZs) in collaboration with PT Kawasan Industri Kendal as the business entity of the Kendal SEZ, held a flag-hoisting ceremony for Indonesia’s 78th Independence Day at Kendal SEZ on Aug. 17, 2023.
Susiwijono Moegiarso, secretary of the Office of the Coordinating Economic Minister, who is also acting secretary-general of the SEZ Denas, acted as ceremony advisor. The event was attended by the deputy coordinating economic minister in charge with coordination of the regional development and spatial area as head of the SEZ Denas executive team; Office of the Coordinating Economic Minister expert staffer for economic regulation, law enforcement and economic resilience affairs who stands as deputy II of the SEZ Denas’ executive team; PT Kawasan Industri Kendal’s president director; the head of Central Java and Yogyakarta Special Region Customs Office of the Customs Office Directorate General; the head of the Semarang Customs and Excise Office’s Supervision and Service of the Medium Type Customs; representatives of development and management business entities across the SEZs in Java, business actors from SEZ Kendal; representatives of Kendal Furniture Polytechnique and representatives of Kendal’s Harapan Mulya Senior High Vocational School (SMK), supported by the Kendal regency administration.
In his welcoming speech, secretary Susiwijono affirmed the optimism about the economy amid the global uncertainties and economic slowdown.
With economic growth of above 5 percent for seven consecutive quarters (during the pandemic and post pandemic), the evidence of the Kendal’s SEZ is clear. This is especially clear when seeing how inflation was controlled at 3.1 percent in the first semester of 2023, highlighting the economic resilience amid the global dynamics.
“All of the macro-economic indicators have shown continued strengthening, thus underpinning all economic activities. Economic growth is targeted at 5.1 percent in 2024, with a controllable inflation rate at 2.8 percent. The optimism will continue to spur the investment inflow to Indonesia, including investment in the entire SEZ ecosystem,” Susiwijono remarked.
In his state speech on the financial note and state budget for 2024, President Joko “Jokowi” Widodo underlined the function of the state budget as shock absorber, as an agent of development and as a solution for people’s prosperity. The state budget is projected to reach Rp 1.781.3 trillion (US$116.21 million) with state spending to reach Rp 3.304.1 trillion, which means required financing amounting to Rp 522.8 trillion, or 2.29 percent of the GDP.
“With the 2024 state budget posture, we are optimistic that the state budget is able to spur economic transformation in embodying inclusive and sustainable development,” Susiwijono pointed out.
This optimism and range of opportunities should be utilized well. Opportunities include pushing for SEZ development as energy and economic centers that make tangible contributions to increasing regional GDP in many areas across Indonesia.
“Today is a good opportunity to spur investment realizations in the SEZs. This is in line with the short-term fiscal strategies, one of which is to support the boosting of investment,” Susiwijono continued.
Responding to the President’s message regarding the 2024 state budget, Susiwijono explained that the government continued to spur the development of the SEZs and the national strategic projects (PSNs) and currently, focus was emphasized on the completion.
“Next year will become the year of completion of various programs and PSN, including the SEZ. We will continually evaluate to make sure that all of the programs and projects can be complete next year,” he noted.
At the occasion, various tujuh belasan (Independence Day celebration) games were held to enliven the event. The games, participated by all participants of the ceremony, also served as a medium through which SEZ stakeholders can develop familiarity and build their working network.
The event ended with the acting secretary-general of the SEZ Denas, SEZ Kendal administrator and the head of the Central Java and Yogyakarta Special Region (DIY) Regional Customs Directorate General office planting trees.
