Indonesia's East Java (Jatim) industrial sector is poised for rapid growth, notably with the presence of the Gresik Special Economic Zone or the JIIPE Special Economic Zone (SEZ) in Gresik Regency, East Java. Designated as Indonesia's SEZ in 2021 by the President, JIIPE is a National Strategic Project (PSN) catering to the demands of Industry 4.0. JIIPE offers superior connectivity with multimodal transportation, deep-sea ports, comprehensive utilities, swift environmental permits, and rapid construction licenses. The SEZ status provides additional incentives for investors, including lower income taxes and customs duties. The integrated Industrial and Port Zone is expected to be a magnet for investors, especially with the establishment of PT Freeport Indonesia's smelter, projected to create multiplier effects, boosting the economy and employment. Adi added that 99% of the smelter's workforce is Indonesian, with 60% from the East Java region, suggesting that the multiplier effects would extend beyond the company itself, benefiting various sectors like micro, small, and medium enterprises (UMKM), home businesses, logistics, transportation, and property.
Donny Muchelly, Senior Marketing Manager of JIIPE SEZ, highlighted the vast scale of the project, spanning 3,000 hectares, with dedicated areas for a port, industrial zone, and residential-commercial area known as AKR Land - Grand Estate Marina (GEM) City. Donny further emphasized the multiplier effects generated by the Freeport smelter's presence, attracting international companies like PT Hailiang Nova Material Indonesia and PT Xinyi Glass Indonesia, thereby contributing to East Java's economic growth. The Freeport smelter in the Gresik JIIPE SEZ presents significant opportunities. With an investment of IDR 465 trillion, it is projected to produce 1.7 million tons of copper anodes or cathodes annually, making it a vital contributor to East Java's manufacturing sector, which has already surpassed the national growth target of 30% by 2045, contributing over 30% to East Java's Gross Regional Domestic Product (PDRB). This industry remains a primary focus for the East Java Provincial Government's development efforts.
