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Jakarta Post

Economic zones of Mandalika, Palu to start operations

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, August 10, 2017   /   06:26 pm
Economic zones of Mandalika, Palu to start operations Planned design of the Special Economic Zone (KEK) in Palu, Central Sulawesi (File/ Courtesy of KEK Palu)

As part of the efforts to accelerate economic growth in eastern Indonesia, the government is gearing up to launch two special economic zones (KEK), one in Mandalika, West Nusa Tenggara, and the other in Palu, Central Sulawesi.

“We recommend the launch of operation of the two special economic zones in late August or in September by President Joko “Jokowi” Widodo,” said Coordinating Economic Minister Darmin Nasution after attending a meeting of the National Council for Special Economic Zones (DN KEK) in Jakarta on Wednesday.

Three hotels -- Pullman Hotel, Royal Tulip Hotel and X2 Hotel – are being constructed in the KEK Mandalika, which focuses on the tourism industry, in Lombok Tengah regency. Construction on three more hotels, ClubMed Hotel, Paramount Hotel and Mozaique Jiva One Sky Hotel, is to begin next year.

Read also: Mandalika promotes Sekotong area in West Lombok

The construction of infrastructure will cost Rp 2.2 trillion (US$164.84 billion) by 2025, while the potential investment from the private companies is Rp 28.64 trillion.

Meanwhile, in the KEK Palu, three investors have started to construct factories. The infrastructure construction will cost Rp 1.7 trillion by 2015, while the potential investment from the private sector is estimated at Rp 92.40 trillion.

Darmin said the KEK Maloy Batuta Trans Kalimantan (MBTK) was actually ready for operations, but the launch was delayed because of technical obstacles, including incomplete land certification and a change in the board of directors.  

KEK Council secretary Enoh Suharto said the operation of the KEK MBTK would be discussed at the council’s meeting in October.  (bbn)