The Indonesian Chamber of Commerce and Industry (Kadin) has officially urged the government to promptly reach a decision regarding the proposed expansion of three manufacturing-based Special Economic Zones (SEZs). This step is considered crucial given the high investor enthusiasm, demonstrating that Indonesia's appeal remains strong despite global economic uncertainties.
Sarman Simanjorang, Vice Chairman for Regional Autonomy Development at Kadin Indonesia, mentioned that the three zones awaiting expansion approval are the Kendal SEZ, Galang Batang SEZ, and Gresik SEZ. All three are seen as vital growth drivers to achieve this year's national investment realization target of IDR 2,175 trillion.
According to Sarman, accelerating the bureaucratic process to approve these expansions will provide legal certainty and boost investor confidence to quickly realize their commitments. New investments in this sector are expected not only to boost overall investment figures but also to create widespread job opportunities for the Indonesian people.
Furthermore, SEZ development is believed to create a multiplier effect for local economies. Increased industrial activity in these zones will generate business opportunities for supporting sectors, including Micro, Small, and Medium Enterprises (MSMEs), such as catering services, transportation, and worker accommodation rentals.
To illustrate, this urgency stems from conditions on the ground, where the Kendal SEZ has reached full (100%) utilization with 140 operating industries. Meanwhile, the Galang Batang SEZ plans to expand its area by up to 2,700 hectares to accommodate downstreaming demands in the bauxite industry and its derivatives.
