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Jakarta Post

SEZ developing at snail's pace amid lack of investor interest

  • Riza Roidila Mufti

    The Jakarta Post

Jakarta   /   Tue, October 15, 2019   /  06:18 pm
The Jakarta Post Image
An aerial photo shows a micro, small and medium enterprises (UMKM) center in the Mandalika Special Economic Zone (SEZ) in Central Lombok. Coordinating Economic Minister Darmin Nasution has admitted that the development of special economic zones in the country is slow.(Antara/Ahmad Subaidi)

The development of special economic zones (SEZs) in Indonesia is progressing at snails’ pace as investors remain reluctant to open factories in the designated areas despite promised government incentives. Coordinating Economic Affairs Minister Darmin Nasution said on Thursday, last week that realized investment in the country’s 13 SEZs totaled only Rp 21 trillion (about US$1.5 billion), or only about 25 percent of the total investment commitment of Rp 85.3 trillion. In line with the low investment, the SEZs have also disappointed in terms of job creation, with only 8,686 people currently employed in the areas. Darmin acknowledged that the number of SEZs that had begun operating was also below the government’s target. “Compared to our expectations, the number of SEZs we have is still [low],” he told the press in comments on investment reali...