Recording Positive Achievements in the First Quarter of 2024, Special Economic Zones (SEZs) Continuously Improve Performance Through Stakeholder Collaboration

Jakarta, INTI - Secretary of the Ministry of Economic Affairs Coordination, Susiwijono Moegiarso, reaffirmed that Indonesia's economy in the first quarter of 2024 remained relatively stable amidst the escalating global geopolitical conditions.

"Our country's inflation remains highly controlled, and in 2024, we've managed to achieve growth above 5%. The possibility of recession remains significantly lower compared to other countries, as the Government has implemented various policies to anticipate the dynamics of global geopolitics," said Susiwijono during his keynote speech at the National Working Meeting of Special Economic Zones (SEZs) for the First Quarter of 2024 on Tuesday (23/04) at Hotel Borobudur, Jakarta.

According to Sesmenko Susiwijono, it is crucial to convey this optimistic spirit to investors worldwide, emphasizing that investing in Indonesia, especially in SEZs, is a wise choice given Indonesia's economic strength.

To enhance the competitiveness of SEZs, monitoring of development progress, investment realization, and the effectiveness of each SEZ's facilities through periodic evaluation meetings are necessary. At the National Working Meeting for SEZs in the First Quarter of 2024, the Acting Secretary-General of the National SEZ Council, Rizal Edwin Manansang, revealed that the Secretariat General of the National SEZ Council monitors and evaluates the sustainability of SEZs, recommending follow-up actions to the President according to the mandate of Government Regulation Number 40 of 2021 concerning SEZ Implementation.

"We also evaluate the contribution of SEZs to regional economies, including investment growth, employment growth, and gross value added or regional gross domestic product growth," stated Acting Secretary-General Edwin.

During the working meeting, it was concluded that 20 SEZs had recorded positive investment realization, an increase in the number of entrepreneurs, and significant job creation. Throughout the first quarter of 2024, these 20 SEZs achieved an investment realization of Rp15.1 trillion, absorbing 9,342 workers, with an additional 19 new entrepreneurs investing in SEZs. Cumulatively until the first quarter of 2024, these 20 SEZs recorded an investment realization of Rp187.5 trillion, providing employment for 126,506 workers.

In their development, SEZs continue to support Indonesia's economy, demonstrated by various SEZ breakthroughs such as downstreaming across various sectors, ranging from downstreaming natural resources in several manufacturing SEZs like Gresik and Sei Mangkei SEZs, to digital downstreaming in Nongsa SEZ, as well as other services such as Healthcare in Sanur SEZ, Education in Singhasari SEZ, and MRO in Batam Aero Technic SEZ. Additionally, one of Indonesia's tourism SEZs, Mandalika SEZ, remains in the global spotlight as it hosts various world-class sports tourism events.

Furthermore, the implementation of the SEZ Working Meeting is expected to serve as a communication forum for SEZ stakeholders throughout Indonesia, including the Central Government, Local Governments, and entrepreneurs, to discuss comprehensive SEZ developments ranging from investment achievements, job creation, multiplier effects, regional development progress, and more.

During the meeting, collaborative efforts between the Government and entrepreneurs were made to address strategic challenges faced in the field, such as challenges in implementing fiscal and non-fiscal facilities, infrastructure provision, meeting human resource needs, and ensuring reliable and affordable energy supply.

"From the records of yesterday's first-day meeting, in addition to our performance achievements, we noted several SEZs that still require support from Ministries/Agencies. On this occasion, we hope that the 17 Ministries/Agencies present can resolve all issues that have been noted in the field implementation," said Sesmenko Susiwijono during the opening speech at the SEZ Working Meeting for the First Quarter of 2024 on Wednesday (24/4).

Ministries/Agencies and all stakeholders need to create a business-friendly environment to attract investments into SEZs, and SEZ development must proceed and achieve the planned targets.

"We hope that by convening with Ministries/Agencies in this Working Meeting, we can provide solutions to SEZ-related issues, thus optimizing the acceleration of goals in SEZ development in Indonesia," concluded Acting Secretary-General Edwin.

Among those present at the meeting were the National SEZ Council Implementation Team, Regional Council Leaders, SEZ Administrator Heads, Heads of 20 Developer and Managerial Agencies (BUPP), and Representatives of Ministries/Agencies.