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SEZ Gresik officially operates to become East Java’s new economic center

SEZ Gresik officially operates to become East Java’s new economic center

The government stated that the Gresik Special Economic Zone (SEZ) had officially operated through Decree of the Chairman of the KEK National Council No. 1 of 2022 on November 8, 2022, and is projected to become a new economic center for East Java Province.

The inauguration of SEZ Gresik was also carried out symbolically by handing over a Decree and Official Certificate of Operation by the Deputy for Coordination of Regional Development and Spatial Planning of the Coordinating Ministry for Economic Affairs Wahyu Utomo and Acting Secretary General of the SEZ National Council (Setdenas) Elen Setiadi, Sunday (20/11).

“Each SEZ that is established through a Government Regulation must be declared operational for a maximum of three years, while for Gresik SEZ it can be established within one year,” said Plt. SEZ Secretariat Elen Setiadi in an official statement in Jakarta, Tuesday.

He explained that the results of field verification showed that SEZ Gresik had met operating standards, so it was hoped that the area could continue to be progressive and meet various existing targets.

SEZ Gresik was declared ready to operate according to the evaluation results carried out by the Deputy Governor of East Java, the Secretariat General of the KEK National Council, and Members of the East Java SEZ Regional Council. Some of the aspects that become evaluation materials include facilities and infrastructure, institutions and human resources (HR), as well as administrative control devices.

Furthermore, the operation of the Gresik SEZ has also had a positive impact on Business Entities (BU) and Business Actors (PU) in Gresik SEZ in the form of the right-to-use facilities and convenience ultimate which is the specialty of KEK.

The fiscal facilities that can be utilized include tax holidays, tax allowances, free of import duty, and others. Meanwhile, non-fiscal facilities can be in the form of facilities in the fields of employment, land, immigration, and environmental facilities, as well as integrated infrastructure support.

Furthermore, Elen said the third step after the first step was in the form of determination and the second step, namely operating, the main and important thing was to fill the area.

“With the superiority of the Gross Regional Domestic Product (GRDP) and population, East Java, which is the location of the Gresik SEZ, is Indonesia’s economic hub and of course, the role of the SEZ in it is very large. With the condition of the large surrounding population, Gresik SEZ is expected to become the foundation for employment,” he said.

The SEZ, which is built on an area of 2,167 hectares, is expected to contribute to the national economy through achieving several targets, such as investment realization of US$6.7 billion, increasing export value to US$12.7 billion per year and import substitution reaching US$9.05 billion US dollars ultimate once fully operational.

Then, also through employment in the first five years as many as 42 thousand people. SEZ Gresik is also expected to be able to increase HR capacity through the development of technology curriculum-based Vocational Education Institutions at both the secondary (SMK) and tertiary levels.

For information, SEZ Gresik also has an anchor investor, namely PT Freeport Indonesia. The presence of PT Freeport Indonesia with ground breaker which was carried out last October 2021 by President Joko Widodo, is expected to be an attraction for various other industries and copper derivative industries to invest in SEZ Gresik.

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Sources:
https://www.kompas.com/

https://www.cnbcindonesia.com/

https://www.antaranews.com/


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