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Gov't Expects Galang Batang SEZ to Spur Economic Growth

Friday, 02-July-2021 22:30

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto
Image : ANTARA/HO-Kemenko Perekonomian
Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto
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JAKARTA, NETRALNEWS.COM - Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto hopes that the Galang Batang Special Economic Zone (SEZ) can be an example and an instrument for driving economic recovery from the COVID-19 pandemic crisis.

For the first time, the Smelter Grade Alumina (SGA) of the Galang Batang SEZ on Friday released 70,000 tons of exports with a value of US $21 million, which is part of the first year's export target of $1 million ton/year with an export value of $300 million.

"I hope that this step to export the Galang Batang SEZ production can be used as an example for other SEZs in the country," said Airlangga, who was present online when launching the first export of the Galang Batang SEZ in Bintan, Riau Islands Province, on Friday (07/02/2021).

Airlangga said the Galang Batang Export SEZ, which in the second year targets export of 2 million tons/year, is expected to have an impact on the national economy by reducing imports of alumina products, as they can be produced domestically. The use of local workers is also the main factor so that the benefits of the SEZ can be felt by the wider community.

"The success of SEZ cannot be separated from the support of all parties, both the central and regional governments. The regional governments are expected to continue to support the development of SEZs, particularly in relation to regional licensing as well as local tax incentives and regional levies in accordance with the mandate of the Job Creation Law," he said.

Airlangga continued that through investment commitments and rapid development realization, the Galang Batang SEZ will focus on modern manufacturing industries, such as the bauxite downstream industry, light industry, and modern logistics that are environmentally friendly, supported by an excellent geographical location to integrate into the global industrial supply chain.

"Once again, we Indonesians hope that SEZ can become an engine of national economic recovery to rise from the impact of the COVID-19 pandemic and at the same time become an instrument of driving Indonesia's competitiveness in the midst of the post-crisis global economic direction," he said.

As a SEZ whose development is quite fast and massive, the Galang Batang SEZ has succeeded in realizing its development plan of IDR14 trillion, which will reach IDR36 trillion by 2025.

SEZ is an effort made by the government to accelerate Indonesia's economic growth through increasing investments both from within and outside the country, increasing exports, suppressing imports through the development of import substitution industries, and increasing job creation.

Reporter : turkhan
Editor : turkhan