Indonesian Government Pushes for Special Economic Zones and National Strategic Projects to Boost Economic Growth

Jakarta, INTI – The Indonesian government continues to pursue various initiatives aimed at driving economic growth and addressing regional disparities, with a focus on the development of Special Economic Zones (SEZs) and National Strategic Projects (NSPs). By the third quarter of 2024, the total realized investment in SEZs reached an impressive Rp242.5 trillion. This milestone not only reflects significant investor interest but also plays a vital role in absorbing 151,260 workers and attracting 394 participating companies and industries.

Investment Realization and Job Creation

Recent data indicate that throughout 2024, up to September, investments in SEZs have amounted to Rp68.43 trillion. Job absorption during this period reached 34,169 people. These figures are a positive indication that SEZs are not only accelerating economic growth but also creating new employment opportunities for the population.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated in a press briefing following a limited meeting on SEZs and NSPs at the Presidential Palace on Tuesday (26/11) that President Prabowo Subianto had issued specific directives to encourage SEZs to continue attracting investments and boosting exports. The President also highlighted the importance of optimizing investment potential gained during his recent overseas visits.

Support for Data Centers and Other Investments

One of the sectors receiving particular attention is the development of data centers. Minister Airlangga emphasized that several investors need to be encouraged to invest in data center projects. This digital infrastructure development is expected to strengthen the technology ecosystem and support Indonesia’s digital transformation.

“We must push for investment in strategic sectors such as data centers so that Indonesia can become a data management hub in Asia,” said Minister Airlangga.

National Strategic Projects: Looking Towards 2025

Regarding NSPs, Minister Airlangga revealed that 18 NSPs planned to be completed in 2024 include dam constructions, toll roads, and other essential infrastructure projects. Meanwhile, 30 other projects are expected to be completed by 2025. Minister Airlangga mentioned that President Prabowo Subianto had directed the acceleration of these projects.

“The President has directed that all NSPs planned for completion in 2024-2025 be pursued vigorously. These projects are crucial to support connectivity and boost the economy,” added Minister Airlangga.

Study on the Giant Sea Wall (GSW)

In the meeting, Minister Airlangga also discussed President Prabowo Subianto’s directive on conducting a study for the Giant Sea Wall (GSW), an ambitious project designed to protect coastal areas from the potential rise in sea levels and natural disasters. President Prabowo emphasized the importance of advancing the GSW project to enhance coastal infrastructure resilience.

“The GSW will be pushed forward, and funding for this project will be managed through the Public-Private Partnership (PPP) mechanism. This is a strategic step to ensure sustainable development,” said Minister Airlangga.

Energy and Food Security

President Prabowo Subianto also placed special emphasis on energy and food security. Minister Airlangga added that these directives aim to strengthen Indonesia’s competitiveness in facing global challenges.

“It is crucial for us to ensure that energy and food security continue to be strengthened. These are fundamental aspects that will support economic stability and public welfare,” continued Minister Airlangga.

Long-Term Benefits for the National Economy

The development of SEZs and NSPs is expected to not only spur short-term economic growth but also bolster the national economy in the long run. With a focus on infrastructure development, job creation, and export enhancement, these programs aim to create a more inclusive and sustainable economy.

Sustainable investments and strategic projects are anticipated to provide benefits for society, enhance Indonesia’s competitiveness on the global stage, and reduce economic disparities across regions. These efforts align with the government’s vision of building Indonesia into a developed and competitive nation.

“We want to ensure that development is not only concentrated on Java Island but is spread throughout the regions, creating more equal opportunities for all,” said Minister Airlangga.

By focusing on SEZ and NSP development, as well as other strategic projects, the Indonesian government demonstrates its commitment to accelerating economic transformation and improving the quality of life for its citizens. Through collaboration between the government and the private sector, these programs are expected to support inclusive economic growth, create jobs, and strengthen energy and food security.