Special Economic Zones Are Giant Job Makers

Jakarta Globe is reporting that President Jokowi’s Special Economic Zones (SEZs) have turned out to be giant job makers as these proposed new centers of growth employ hundreds of thousands of people.

Creating job opportunities for Indonesia’s large population has become one of the mammoth tasks that the Jokowi administration has had to tackle. These SEZs are among Jokowi’s strategies for job creation as well as offering investors a suite of incentives ranging from easier permits to corporate income tax deduction, in the hopes that they will build their factories here. Their expansions will eventually lead to job opportunities for the locals.

The government began assigning the SEZ status in 2012. Banten’s Tanjung Lesung became the first SEZ to focus on tourism. The government also appointed North Sumatra’s SEZ Mangkei as the country’s first industrial SEZ. But it was only until 2015 when the said two SEZs entered operations. Since then, the government has established a total of 24 SEZs across the archipelago, two of them having only been awarded their special economic zone status not long ago, according to Jakarta Globe.

Government data showed that 22 SEZs had recorded investments of up to IDR 205.2 trillion (USD 13.3 billion) as of June 2024 since their inception. These SEZs have spurred jobs for 132,227 people from the 368 businesses that are active in the zones. This does not include the recently announced Banten International Educational, Technology, and Health SEZ, which is forecast to create jobs for 13,446 people. Indonesia’s 24th SEZ, the Batam International Health SEZ, is set to generate 105,406 employment opportunities.

It is no surprise that most Indonesian SEZs are industry-based as Indonesia is in pursuit of taking a better advantage of its abundant natural resources. There are a total of 12 industry-based SEZs so far, including Central Java’s Kendal which has witnessed massive progress over the years, says Jakarta Globe.

The Kawasan Industri Kendal got its SEZ title in 2019, just a few months after Jokowi got re-elected. It was also in his second term that Jokowi ramped up his massive domestic processing push. Jokowi wants Indonesia to process its natural resources at home so the country will produce the higher valued goods. The domestic production activities will lead to job creation for the locals. The Kendal SEZ so far hosts 117 businesses, many of whom are Chinese investors.

“The Kendal SEZ has absorbed a workforce of 52,000 people, and 70 percent of them are Kendal locals,” Kawasan Industri Kendal’s marketing head, Julaini Sari Kusumaningrum, said, while adding that the rest of the workers come from nearby cities such as Demak.

Jakarta Globe reports that earlier this year, Jokowi launched the manufacturing plant for Chinese anode battery material company BTR in Kendal SEZ. The project is set to employ up to 7,800 workers. BTR will export the produced battery materials to American electric vehicle manufacturer Tesla and South Korean consumer goods giant Samsung, among others.

 

Source: Jakarta Globe

Stock image by Komet Flicker on Pexels 

Latest Article
Nongsa Digital Park Batam: Foreign Investors Attraction
Nongsa Digital Park (NDP), part of the Nongsa Special Economic Zone (SEZ), is a dedicated digital business...
15 Foreign Investors Show Interest in Indonesia’s Textile Industry
Indonesia’s textile and textile product industry is set to attract 15 foreign investors, according to...
Central Java Opens 17 Key Investment Opportunities
The Central Java Provincial Government has opened doors to 17 lucrative investment opportunities across...
Jakarta Property Market Shows Resilience in 2024
  With a new era of government leadership, Indonesia’s property market is set for a fresh wave of...
Indonesia Targets Shadow Economy for Tax Revenue
  Indonesian government is currently targeting shadow economy, or underground economy, as a significant...

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.

Contact Our Consultants

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.