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Eight new destinations to be developed through KEK scheme: Official
Investment is more attractive through the KEK model because of speedy license processing, fiscal incentives and infrastructural support.
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People watch a dance performance at Kuta Mandalika Beach in West Nusa Tenggara as part of the Asian Games torch relay in July 2018. (JP/Panca Nugraha)
The government plans to develop 12 special economic zones (KEKs) this year that include tourist destinations.
The Tourism Ministry's head of development acceleration for priority tourist destinations, Hiramsyah S. Thaib, said the ministry expected eight KEK destinations to be approved by President Joko “Jokowi” Widodo this year.
He said the President would decide on whether Tanjung Gunung and Sungai Liat in Bangka Belitung and Singosari in East Java would be three of the destinations.
Hiramsyah said the KEK scheme was developed to promote tourist destinations dubbed the New Balis because through the KEK model, investment was more attractive because of speedy license processing, fiscal incentives and infrastructural support.
“The KEK is a business model that is suitable for today’s needs,” he said in Jakarta on Tuesday as quoted by kontan.co.id.
He said four New Balis that were being developed through the KEK scheme were Tanjung Kelayang in Belitung with an expected investment of US$1.4 billion, Tanjung Lesung in Banten ($4 billion), Morotai in Maluku ($2.9 billion) and Mandalika in West Nusa Tenggara ($3 billion).
He said investment targets had not been fully met for each project, but the expected 2019 to 2024 investment for Mandalika could be doubled as the KEK area had been expanded to 1,200 hectares.
Development of the 10 New Balis needs a total investment of Rp 500 trillion, of which 32 percent will come from the state budget, particularly for the development of basic infrastructure, while the remaining 68 percent will come from private investors. (bbn)
