President Joko Widodo (Jokowi) has officially established the Tanjung Sauh Special Economic Zone (SEZ) through Government Regulation No. 24 of 2024. With this establishment, Indonesia now has 21 SEZs across the country. Located on Tanjung Sauh Island, Batam City, in the Riau Islands Province (Kepri), the SEZ covers an area of 840.67 hectares. Proposed by PT Batam Raya Sukses Perkasa, the Tanjung Sauh SEZ has committed to a total investment realization of IDR 199.6 trillion and is expected to create 366,087 jobs by 2053. "The development of the Tanjung Sauh SEZ is expected to enhance Indonesia's competitiveness and significantly impact the regional economy through investment inflows reaching IDR 199.6 trillion and the creation of both direct and indirect employment for 366,087 people over 30 years," stated Acting Secretary General of the National SEZ Council, Rizal Edwin Manansang, as quoted from the official website of the National SEZ Council on Monday, 3 May 2024.
The Tanjung Sauh SEZ's business plan includes production and processing, energy development, and logistics and distribution. The SEZ will host industries such as electronic component manufacturing (PCB, RFID, GPS, CCTV, and semiconductors) and electronic product assembly. Furthermore, Tanjung Sauh will serve as a modern Gateway Port, capable of handling up to 5 million TEUs, and will become a logistics hub between Batam and Bintan. The SEZ will also be a center for research and development in the energy sector, producing alternative, renewable, and primary energy to meet industrial and household needs in Batam-Bintan. The port within the Tanjung Sauh SEZ will be a crucial link for logistics mobilization between the Riau Islands and national and international markets. The establishment of the Tanjung Sauh SEZ marks a strategic move to bolster economic growth, attract significant investments, and create substantial employment opportunities, enhancing the region's overall economic landscape.
