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Criticism mounts over plan for more industrial zones across Java
The government’s plan to develop new special economic zones on Java has run up against opposition, with critics saying it would not only hamper the goal of creating equal economic development across the country but also put an additional burden on the densely populated island.
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The Suryacipta City industrial estate, developed by Surya Semesta Internusa, is located in East Karawang, West Java. (Courtesy of http://www.suryainternusa.com//File)
The government’s plan to develop new special economic zones on Java has run up against opposition, with critics saying it would not only hamper the goal of creating equal economic development across the country but also put an additional burden on the densely populated island.
The idea comes from Coordinating Economic Minister Darmin Nasution, who recently said the government would allow the development of industrial special economic zones (SEZ) in Java as long as they were export-oriented, facilitated import substitution or were hi-tech industries.
Separately, Industry Minister Airlangga Hartarto said the industrial zones would be located in Central Java and East Java. The one in Central Java would focus on automotive, textile and electrical components, while the one in East Java would become a “digital cluster” similar to the Nongsa Digital Park in Batam, Riau Islands.
The idea has raised questions over the government’s commitment to equalize development across Indonesia, with the bulk of economic activity still concentrated on Java.
The move was also seen as a step back from the government’s previous stance of directing the development of industrial SEZs to regions outside of Java, while SEZs in Java would focus on tourism, such as in Tanjung Lesung, Banten.
