Development of the Likupang and Kendal Special Economic Zones Approved

August 15, 2019

Rizky Alika - August 15, 2019 - 16:20 WIB

The National Council for Special Economic Zones (KEK) has agreed on the development of two KEKs, namely in Likupang, North Sulawesi and Kendal, Central Java. Likupang will become a tourism SEZ while Kendal is for an export-oriented 4.0 industry. "The principle is agreed. But there are indeed some records relating to the area and conditions that must be completed," said Transportation Minister Budi Karya Sumadi after attending a meeting at the Coordinating Office for the Economy, Jakarta, Thursday (15/8).

At present, the area of ​​land for the KEK Likupang reaches 200 hectares. However, it will be expanded to 2 thousand hectares. Infrastructure will be improved through road construction, airport extension and port renovation. According to Budi, investment for port renovation alone reaches Rp 100 billion. (Read: Waiting for Entrepreneur Capital Injections in 10 New Bali) While the Kendal KEK will have 1,000 hectares of land. Kendal Industrial Park's Executive Director Didik Purbadi said, the Kendal KEK was prioritized for the export-oriented 4.0 industry. The industrial sectors such as textiles and clothing, furniture, food and beverages, automotive, electronics, to logistics. The investment value for infrastructure development and regional facilities in Kendal is Rp. 4.8 trillion. "We are also committed to bringing in foreign direct investment reaching US $ 600-700 million within the next three years," he said. Until 2025, the Kendal SEZ is expected to absorb 80 thousand workers.

The KEK National Council also agreed on a change of plans for the development of the Tanjung Api Api KEK in South Sumatra. This KEK will move to an area close to Tanjung Carat Harbor. The proposed amendment to the Tanjung Api Api SEZ will be set forth in the amendment to Government Regulation Number 51 of 2014.