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Friday, 14 June 2024 06:48

Pursuing Economic Growth, Government Legalises Tanjung Sauh SEZ

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VOInews, Batam: Indonesian President Joko Widodo has established the Tanjung Sauh Special Economic Zone (SEZ) through Government Regulation (PP) Number 24 of 2024. The SEZ, which is located on Tanjung Sauh Island, Batam City, Riau Islands Province, has an area of 840.67 hectares.


The establishment of the Tanjung Sauh SEZ was carried out to accelerate job creation, the development of the Batam city area in supporting regional economic development and the national economy. "With the development of the Tanjung Sauh SEZ, it is expected to boost Indonesia's competitiveness, as well as have a significant impact on the regional economy through investment receipts reaching Rp199.6 trillion and job creation, both direct and indirect, of 366,087 people when fully operational for 30 years," said Acting. Secretary General of the National SEZ Council, Rizal Edwin Manansang, as quoted from an official statement on Wednesday (12/6/2024).


Mr Manansang further explained that the optimised development of the area is expected to contribute to the Riau Islands' GRDP, reaching Rp166.81 trillion cumulatively. "The Tanjung Sauh SEZ has an investment realisation commitment of Rp199.6 trillion and is expected to be able to absorb a workforce of 366,087 people until 2053," the statement read.


It is known that the Tanjung Sauh SEZ has a production and processing business plan, energy development, and logistics and distribution. In this SEZ, the electronic component industry (PCB, RFID, GPS, CCTV, and Semiconductor) will be developed, as well as the electronic product assembly industry. "In terms of ports, the existence of the port in Tanjung Sauh SEZ between Batam and Bintan is an important bridge for logistics mobilisation between the Riau Islands and the national and international markets. Tanjung Sauh SEZ will also act as a modern gateway port, able to accommodate up to 5 million TEUS, and become a logistics centre in the region between Batam and Bintan," he continued.


Tanjung Sauh SEZ will also become a centre for research and development in the energy sector, as well as a producer of alternative energy, renewable energy and primary energy, which is predicted to meet the needs of industries and households in Batam-Bintan. According to the Coordinating Ministry for Economic Affairs, through Government Regulation No. 24 of 2024, there are already 21 SEZs spread across Indonesia, and have recorded an investment of Rp187.5 trillion with the creation of 126,506 workers by March 2024. "The development of SEZs generally aims to increase investment, exports, import substitution, create jobs, create a breakthrough model of regional development through industrial and service development. The targets are globally competitive industries, international tourism services, education and health services, and the digital economy," he concluded.

Source:  Indonesian Coordinating Ministry of Economy

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