Special Economic Zones Worth IDR 36.25 Trillion Inaugurated Immediately

Jakarta – The government immediately inaugurated the special economic zone of Galang Batang in Bintan Regency, Riau Islands Province with a total investment value of Rp. 36.25 trillion.

Coordinating Minister for Economic Affairs, Darmin Nasution, said that the Galang Batang SEZ would get a large investment from China. This Galang Batang SEZ will be inaugurated on Saturday (12/08/2018) tomorrow.

“Tomorrow I want to inaugurate the SEZ in Bintan and KEK in which there is a large investment smelter for Bauxit which will produce Alumina, a large investment from China,” he said on Friday (12/07/2018).

Based on data from the Ministry of Economic Affairs, the Galang Batang SEZ in Bintan Regency, Riau Islands Province has an investment of IDR 36.25 trillion for 6 years with an initial realization of IDR 5.6 trillion.

In addition, 23,200 people are estimated to be absorbed and will prioritize local workforce. Meanwhile, the land area reaches 2,333.6 hectares (ha).

Meanwhile, the projected economic impact increases output by Rp.124 trillion to the regional economy in 2029. The SEZ uses the legal basis of Government Regulation (PP) No 42/2017.

The Galang Batang SEZ will be managed by PT Bintan Alumina Indonesia with activities mainly in the bauxite and logistics processing industries.

Darmin then continued that the official construction had begun to be built from large companies from China and would continue to grow.

“Usually there is no investment that we have been able to launch, then the KEK Lhokseumawe is also ready to be inaugurated, then East Java has proposed Singosari. Bangka Belitung has proposed, so there will be [several more],” Darmin said.

Quoting information from kek.go.id, Galang Batang SEZ will consist of 4 zones, namely: Export Processing Zone, Logistics Zone, Industrial Zone, and Energy Zone. This SEZ will be developed as an industrial base for processing and refining bauxite ore (refining) into alumina, processing alumina into aluminum ingots (smelting), energy, developing Steam Power Plants (PLTU), logistics, developing loading and unloading ports and others.

The mining and quarrying sector has contributed significantly to the economy of Bintan Regency. With the establishment of the Galang Batang SEZ as a place of concentration for industrial activities by processing products from upstream to downstream, this SEZ is expected to attract an investment of Rp. 36.25 trillion over the next 6 years. In addition, the Galang Batang SEZ is also projected to absorb a workforce of 23,200 people.

The geoconomic superiority of the Galang Batang SEZ is in the strategic location of the Riau Islands which is crossed by the Malacca Strait which 94,000 ships pass annually. Galang Batang SEZ is also located in the Indonesian Archipelago Sea Channel (ALKI) I, which crosses the South China Sea.

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