SEZ in Indonesia is a new policy. Although government of
Indonesia has decided that Bintan, Batam, Karimum as SEZ, the new SEZ has
already developed again. This SEZ is based on Law 39 year 2009 about Special
Economic Zone. Then, government derives into government regulation (PP No. 2
Tahun 2011) about the implementation of SEZ. These regulations underlay the
implementation of SEZ.
SEZ is aimed for enhance economic, not only economic growth,
but also economic development. There are some difference between economic
growth and economic development. Economic growth just regard about enhancing
economy which appear in increasing GDP. While economic development talks about
how government decreases poverty, absorb more labor, and diversify sector of
production. SEZ is intended to enhance economic development in order to
increase welfare of society.
Why SEZ is very crucial? One of main problem in Indonesia
economy is the lack of direct investment. Direct investment is one component of
GDP. If direct investment increase, also it will increase GDP. Unfortunately,
investment in Indonesia is still low. There are many reasons why Indonesia is
very poor to attract investment. One reason is lack of infrastructure quality
and quantity. Another reason is the difficulty in pursuing license from
government.
In the SEZ, all obstacles which deter investment to flow to
Indonesia will be undermined. Government wants to provide good environment for
investor by creating zones which is easy to invest. SEZ provides that, so we
hope that the economy will be enhanced not only in SEZ, but also in district
and province where SEZ is built.
If there are many investor come in SEZ, it means that there
are many investment in that location. For doing business, investor need factor
production. So, they will absorb local people to work in their company. Another
benefit when investor coming is increasing output that can be exported to
foreign country. So, the SEZ exactly can enhance economy in other to create
welfare to society. []
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