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Jakarta Post

SEZs develop at snail's pace amid lack of investor interest

  • Riza Roidila Mufti

    The Jakarta Post

Jakarta   /   Thu, October 17 2019   /  02:14 am
On track: Aerial view of street circuit development in Mandalika, Central Lombok, West Nusa Tenggara on Oct. 10. Mandalika is among the government’s planned special economic zones for the tourist industry, as it will host the world’s premier motorcycle racing class, MotorGP, in 2021. (Antara/Ahmad Subaidi)(Antara/Ahmad Subaidi)

On track: Aerial view of street circuit development in Mandalika, Central Lombok, West Nusa Tenggara on Oct. 10. Mandalika is among the government’s planned special economic zones for the tourist industry, as it will host the world’s premier motorcycle racing class, MotorGP, in 2021. (Antara/Ahmad Subaidi)The development of special economic zones (SEZs) in Indonesia is progressing at snail's pace as investors remain reluctant to open factories in the designated areas despite promised government incentives.Coordinating Economic Minister Darmin Nasution said on Oct. 10 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 th...