Boosting Indonesia’s Economic Growth: SEZs as Pillars of National Infrastructure

Jakarta, INTI - The Indonesian government continues to drive sustainable economic growth through strategic infrastructure development. One of the main initiatives is the development of Special Economic Zones (SEZs), which are central to long-term plans for strengthening the nation’s economic foundation. SEZs are not only designed to enhance global competitiveness but also to create lasting benefits for the broader society.

During a working visit to Batam City on Monday (26/08), Coordinating Minister for Economic Affairs Airlangga Hartarto reiterated the government’s commitment to SEZ development. Airlangga emphasized that SEZs play a crucial role in creating an environment conducive to investment, which in turn supports Indonesia’s economic growth. “Special Economic Zones are a key pillar of our economic development. With improved infrastructure and supportive regulations, we can attract more investment, create jobs, and improve public welfare,” said Coordinating Minister Airlangga.

The government is also strengthening cooperation between the Batam Free Trade Zone Authority (BP Batam), the Batam City Government, the Riau Islands Provincial Government, and the Central Government to ensure that SEZ development proceeds as planned. This synergy is deemed essential, particularly in facing global challenges such as geopolitical tensions, international competition, and commodity price fluctuations that affect the investment climate.

Infrastructure Development and Investment in Batam

Batam City, long known as an industrial and trade hub, is further solidifying its position as an investment center through the establishment of SEZs. Batam's geographical advantage as Indonesia’s closest archipelago to other ASEAN countries provides a strategic position to attract investments across various sectors.

Minister Airlangga expressed his appreciation for the significant increase in investment in Batam over the past five years. “Investment in Batam has seen remarkable growth. The government has provided various support measures, one of which is through SEZ facilities. Four of the five SEZs in the Riau Islands Province are located on Batam Island,” explained Airlangga.

The government continues to work on improving Batam’s infrastructure, including airports, ferry ports, and other public services. These efforts are aimed at making Batam a model investment destination and the best administrative service provider in Indonesia. Airlangga hopes Batam can become a role model for other regions in Indonesia in terms of attracting investment and providing excellent public services.

Challenges and Future Prospects

However, challenges remain. Global economic fragmentation and climate change are issues that must be addressed wisely. In this context, BP Batam’s role is crucial in ensuring that SEZ development proceeds as expected. Airlangga also reminded that going forward, investment is the key to Indonesia’s economic growth and job creation.

Furthermore, Minister Airlangga highlighted the development of the Rempang Eco-City, which is planned as an Eco-City. This area is expected to become a future example of sustainable and environmentally friendly development. “I hope BP Batam and its entire team will continue to work hard to achieve this. We need to ensure that SEZ and other area developments can bring the greatest benefits to society,” Airlangga concluded.