Indonesian SEZs have absorbed 23,000 workers: minister

Coordinating Minister for Economic Affairs Airlangga Hartarto has said that the 15 operating Special Economic Zones (SEZ) in Indonesia have provided jobs to 23 thousand workers and absorbed an investment of Rp64.4 trillion.

“The 15 operating SEZs, they have an investment amounting to Rp64.4 trillion. From the 150 companies, there are already 23 thousand workers and export contributions of Rp3.8 trillion,” Hartarto informed while making a report to President Joko Widodo (Jokowi) during the groundbreaking of PT Freeport Indonesia’s smelter at Gresik SEZ, East Java, on Tuesday.

The Gresik SEZ, which is the location of Freeport’s copper refining and processing plant, was established on June 28, 2021 through Government Regulation No. 71 of 2021. The 2,167-hectare SEZ is expected to absorb an investment of Rp71 trillion in the first 5 years of its operation, the minister said.

The Gresik SEZ includes companies from the metal (smelter) industry, the electronics industry, the chemical industry, the energy industry, and logistics, he added.

PT Freeport Indonesia (PTFI) is the anchor tenant of Gresik SEZ, with its investment in the construction of the smelter reaching Rp42 trillion, Hartarto informed. The smelter is expected to have the largest single-line capacity in the world, processing 1.7 million tons of copper concentrate per year, he noted.

“This will make a positive contribution to the value of Indonesia’s exports and an import substitution as well,” the minister remarked.

During the Freeport smelter groundbreaking, President Widodo expressed the hope that the presence of PT Freeport Indonesia in Gresik SEZ would attract other industries to participate in the area.

“I hope that the presence of PT Freeport in the Gresik SEZ will attract other industries to participate in this area, especially the copper derivatives industry to invest here,” he said.

The President emphasized that the government will continue to provide full support to improve the investment climate in the country.

The government will support infrastructure development, as well as business easing and certainty, he said. In addition, the availability of human resources that match the industry’s needs will also be supported by the provincial government and district/city governments, he added.

“We hope this Gresik Special Economic Zone will be more advanced, and Indonesia will be more attractive as an investment destination,” the President added.

Source: Antara News

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