President Joko Widodo Establishes Tanjung Sauh Special Economic Zone to Boost National Economy

Jakarta, INTI – Indonesian President Joko Widodo has officially designated the Tanjung Sauh Special Economic Zone (SEZ) through Government Regulation No. 24 of 2024. Located on Tanjung Sauh Island in Batam City, Riau Islands Province, the SEZ spans an area of 840.67 hectares. This move aims to accelerate job creation and regional development, bolstering both the local and national economies.

“With the development of Tanjung Sauh SEZ, we expect to enhance Indonesia’s competitiveness significantly. This SEZ is projected to attract investment worth IDR 199.6 trillion and create approximately 366,087 jobs, both directly and indirectly, over the next 30 years,” stated Rizal Edwin Manansang, Acting Secretary-General of the National SEZ Council.

Economic Impact and Investment Goals

Rizal Edwin elaborated that the optimal development of this zone is anticipated to contribute cumulatively IDR 166.81 trillion to the Gross Regional Domestic Product (GRDP) of the Riau Islands. The SEZ’s business plans include production and processing, energy development, and logistics and distribution. Tanjung Sauh SEZ commits to realizing IDR 199.6 trillion in investments, aiming to absorb a workforce of 366,087 people by 2053.

Industry and Infrastructure

The Tanjung Sauh SEZ plans to foster industries such as electronic components (including PCBs, RFID, GPS, CCTV, and semiconductors) and electronics assembly. Its strategic location, with a port between Batam and Bintan, will serve as a crucial logistics bridge connecting the Riau Islands with both national and international markets. The SEZ aims to become a modern gateway port with a capacity of up to 5 million TEUs, establishing itself as a central logistics hub in the region.

Research and Development in Energy

Additionally, Tanjung Sauh SEZ is set to become a center for research and development in the energy sector. It will produce alternative, renewable, and primary energy to meet industrial and residential needs in the Batam-Bintan area.

Nationwide SEZ Development

The establishment of Tanjung Sauh SEZ brings the total number of SEZs in Indonesia to 21, which collectively have attracted investments amounting to IDR 187.5 trillion and created 126,506 jobs as of March 2024. The overall goal of SEZ development in Indonesia is to boost investment, exports, and import substitution, create job opportunities, and pioneer new regional development models through industrial and service sector growth. The focus is on globally competitive industries, international standard tourism services, education and healthcare services, and the digital economy.

By implementing Government Regulation No. 24 of 2024, the Indonesian government reaffirms its commitment to fostering economic growth and regional development through strategic investments and job creation in special economic zones.

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