To Attract Investor by Special Economic Zone

Since globalization is take place, each country competes to develop its economy, especially to attract direct investment from abroad. They strive to create good environment for investors in doing business activity in order to make investors feel comfort, so that they would retain their money. 

Investment is much related with the attractiveness of the country. There are many factors which determine the willingness to invest, such as bureaucracy, resource potential, availability of infrastructure, social and political condition, fiscal and non-fiscal incentive, etc. Those factors will determine the willingness to invest, especially direct investment from abroad. So, every government has to focus in those factors in order to create good condition for investment. 

The government of Indonesia tries to attract investment both from abroad and domestic. The government strives to attract investor by many strategies, especially by creating special economic zone. This strategy is appertained new in Indonesia. Actually, we have had same strategies by creating special economic zone in Batam, Bintam, and Karimun. But those special economic zones are different with this one. This policy tries to make special area which is given fiscal and non-fiscal incentive, good infrastructure, and one stop services, and many other facilities. 

Special economic zone is a new policy in which Indonesia tries to implement in order to attract investors. If Indonesia can create good environment for investor, it can be easy for Indonesia to get investment. But until now, Indonesia still faces many challenges and obstacles to achieve it. Why this happen? I think that the problem is related with the lack of government role. In other words, the government of Indonesia still can’t create good environment for investment with good policy. However, there are many obstacles for investment which come from government conduct, such as the difficulty for taking license.

The idea for creating special economic zone comes from the argument that there are still many obstacles for investing in Indonesia. If special economic zone is implemented, all of obstacle will be decreased. Infrastructure will be built in line with investor need, permission process will be easy, and also government will give fiscal and non-fiscal incentive to attract investor. So, we hope that special economic zone will create more opportunity for job seeker, enhance gross domestic product, especially within province. []