Indonesia inaugurates 2 new special economic zones to boost investment

Jakarta: Indonesia has established two new Special Economic Zones (SEZ) to boost investment, an official said in a statement on Thursday.

The inauguration of the two new SEZs, located in the provinces of Banten and Riau Islands, was signed by President Joko Widodo on Monday, reports Xinhua news agency.

The new SEZ in Banten will focus on research, the digital economy, and educational, health, and creative industries. Meanwhile, the new SEZ in Riau Islands will concentrate on international health tourism.

"Each SEZ has a specific development focus and is expected to have a significant impact on the economy, create jobs, and attract investment. This move reflects the government's efforts to increase the competitiveness of the national economy through the development of strategic sectors," said Secretary-General of the National Council for SEZ Rizal Edwin Manansang.

The SEZ in Banten is targeted to reach an investment realisation of 18.8 trillion Indonesian rupiahs (around $12 billion) when fully operational and is expected to absorb up to more than 13,000 workers.

Meanwhile, the SEZ in Batam is targeted to reach an investment realisation of 6.9 trillion Indonesian rupiahs (around $440 million) and is expected to absorb up to around 100,000 workers.

Southeast Asia's biggest economy currently has 22 SEZs with 368 business operators, and the government has set a target of around 38,000 workers by this year.