TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Lido SEZ can keep $4.1 million in tourism spending in the country: Govt
A new special economic zone in Bogor could bring foreign tourists into the country and keep Indonesians from going abroad for theme park experiences, the President hopes.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
P
resident Joko “Jokowi” Widodo said he wanted the Lido special economic zone (SEZ), located in Bogor, West Java, to help the country reduce outbound travel by Indonesians to famous theme parks abroad.
At least 11 million Indonesians travel abroad for vacations annually, and getting half of them to opt for a domestic alternative could help the country save foreign exchange while providing a boost to local tourism.
“I hope no more of our people will prefer to go on a vacation abroad than in their own country,” Jokowi said in a statement on Friday.
The Lido SEZ is set to house several tourist attractions, such as a theme park, a film studio called Movieland, a water park and a technology park.
Other facilities includes luxury housing, a resort, five-star hotels and a golf course, with the latter two operated by the Trump Organization, a company owned by former United States president Donald Trump, news agency Reuters reported.
Read also: Government dubs Trump-backed MNC park as SEZ
Coordinating Economic Minister Airlangga Hartarto said in a statement on Friday that the SEZ could help reduce foreign exchange outflows related to outbound vacations by US$4.1 billion in the first two decades of operations.
The Lido project is fully owned by MNC Land, a subsidiary of conglomerate MNC Group owned by tycoon Hary Tanoesoedibjo.
As of March 31, the project owner has invested Rp 3.4 trillion (US$228.1 million) since development began in March 2021.
The project is to be completed in three stages, with the first phase requiring Rp 14.2 trillion of investment. The second and third stages will consume Rp 5.8 trillion and Rp 12 trillion, respectively.
MNC Land said the SEZ status meant investors or developers operating in the Lido area benefited from value-added tax (VAT) and luxury goods sales tax waivers and were exempt from import duties and excise.
Firms in the area can benefit from corporate income tax cuts for 10 or 20 years, depending on the size of the investment.
Other nonfiscal incentives include leeway for foreign ownership restrictions as well as right-to-build land permits, which are valid for up to 80 years.
The Lido area is located about 60 kilometers from Jakarta, with existing infrastructure such as the Bogor-Ciawi-Sukabumi (Bocimi) toll road enhancing accessibility.
“Carrying the concept of an integrated tourist destination, the Lido SEZ is predicted to provide a significant contribution to the country's foreign exchange earnings through foreign investment activities and foreign tourist arrivals,” MNC Group chairman Hary Tanoesoedibjo said in a statement on Friday.
“The project will bring in foreign exchange from foreign tourists, while domestic tourists [opting for] a vacation in Lido will help reduce foreign exchange outflow,” he added.
