Govt may revoke SEZ status for insignificant area following evaluation

Jakarta (ANTARA) - Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, stated that the government is evaluating some Special Economic Zones (SEZs) and is about to revoke the SEZ status for areas with insignificant investment achievement."Based on the president's direction, we will evaluate some SEZs until next year. If there is no significant investment growth, we must revoke the SEZ status," Moegiarso stated at the Public Communication Strategy FGD for SEZ Development in Jakarta, Friday (November 10).

Currently, 20 areas have been designated as SEZs comprising 10 Industrial SEZs and 10 Tourism SEZs, namely Arun Lhokseumawe SEZ, Sei Mangkei SEZ, Batam Aero Technic SEZ, Galang Batang SEZ, Kendal SEZ, Gresik SEZ, Sorong SEZ, Bitung SEZ, Palu SEZ, MBTK SEZ, Nongsa SEZ, Tanjung Kelayang SEZ, Tanjung Lesung SEZ, Lido SEZ, Morotai SEZ, Likupang SEZ, Mandalika SEZ, Bali Kura-Kura SEZ, Sanur SEZ, and Singhasari SEZ.

"Withdrawing the SEZ status does not mean the industry will be closed. It can shift to a National Strategic Project (PSN). I hope the evaluation result will be out at the end of this year," he remarked.

However, he noted that the government continues SEZ development in the country. Of the 20 SEZs, they succeeded in achieving investment realization of Rp35.71 trillion, or 25 percent of the cumulative investment, in the third quarter of 2023.

Moreover, they were able to open job opportunities for 31,557 people, or 36 percent of the cumulative workforce. Meanwhile, additional exports also reached Rp8.15 trillion in the third quarter of 2023, he stated.

Source: Antara News Agency