The Secretariat General of the National Council for Special Economic Zones (KEK) reported that investment realization in KEK has reached IDR 205.2 trillion since the inception of KEK up to the first semester of 2024. Acting Secretary General of the National KEK Council, Rizal Edwin, stated that by the first semester of this year, KEK has absorbed approximately 132,227 workers. “Cumulatively from 2012 to the first semester of this year, we have accumulated IDR 205.2 trillion. For this year, from a target of IDR 78.1 trillion, IDR 31.4 trillion has been collected, which means 40% of this year's target has been realized,” Rizal mentioned during a media sharing session on Special Economic Zones in Jakarta on Monday.
For 2024, the government targets the absorption of 38,953 workers, with 39% or about 15,229 workers having been fulfilled by the first semester. Cumulatively, by the first semester of 2024, Rizal reported that 22 KEK zones have been inaugurated with a total of 368 business operators. Additionally, there are 36 new business operators active in KEK as of the first semester of this year. Rizal explained that the development of KEK aims to improve the trade balance, promote Industry 4.0, and establish new economic centers. He noted that KEK is attractive to businesses due to various government-provided facilities, including fiscal and non-fiscal incentives. Fiscal facilities include tax holidays, with durations of 10, 15, or 20 years depending on the investment size: 10 years for investments of at least IDR 100 billion, 15 years for IDR 500 billion, and 20 years for IDR 1 trillion. Additionally, the government offers tax allowances and eases licensing and immigration processes for investors. “These facilities aim to enhance Indonesia’s attractiveness and competitiveness in attracting foreign investment to develop special economic zones in designated areas,” Rizal concluded.
