The Integrated Industrial and Port Estate (IIPE) has been designated as a Special Economic Zone (SEZ) in Indonesia by the President in 2021, serving as a National Strategic Project to meet the demands of Industry 4.0. IIPE, as an SEZ, offers superior connectivity with multimodal transportation, deep-sea ports, comprehensive utilities, swift environmental permits, and construction licenses. The SEZ status provides additional incentives for investors, including lower income taxes and customs duties. The establishment of the Integrated Industrial and Port Area is expected to attract investors, especially with the presence of PT Freeport Indonesia's smelter, projected to create multiplier effects, boosting the economy and employment. Acting Governor of East Java, Adhy Karyono, is optimistic about the smelter's contribution to the region's economy, highlighting its substantial employment opportunities, with approximately 99% of workers being Indonesians, notably 60% from East Java.
Furthermore, Donny Muchelly, Senior Marketing Manager of IIPE SEZ, emphasizes the magnitude of the project, spanning 3,000 hectares, with designated areas for port facilities, industrial zones, and residential-commercial zones. He also underscores the impact of Freeport's smelter on attracting other international companies, potentially fostering economic growth in East Java. The Freeport smelter in the Gresik SEZ within IIPE presents a significant opportunity, with operations scheduled to commence in May. With an investment of IDR 465 trillion, the smelter is poised to produce 1.7 million tons of copper anodes or cathodes annually, contributing to national manufacturing growth targets. Notably, the manufacturing sector in East Java has exceeded the national growth rate, with significant contributions to the region's Gross Regional Domestic Product (GRDP), aligning with the provincial government's strategic focus.
