The Indonesian government has developed an application system expected to lure domestic and foreign investors to the county’s special economic zones, locally known as KEKs.
“The special application system guarantees efficiency so that business players only need to use one system for various services in the special economic zones.
“It provides convenience because it only requires one single document,’’ Minister of Finance Sri Mulyani Indrawati said at a webinar on KEKs on Monday.
With the special facility, Indrawati hoped that the special economic zones can attract domestic and foreign investment so as to accelerate the recovery of the pandemic-hit economy.
The application system was developed by the Indonesian National Single Window Institution along with the Ministry of Finance’s Directorate General of Taxes and Directorate General of Customs and Excise.
With this application system, business players who were active in the KEKs were expected to get various facilities more easily, Indrawati said.
“I hope that the development of information and technology in the KEKs can realise the competitiveness of the development of Industry 4.0 in Indonesia, namely industries based on electronics and automation,’’ she said.
Coordinating Minister for Economic Affairs Airlangga Hartarto said until August, as many as 129 business entities have registered their profiles in the special application system in the KEKs.
According to him, the facilities include exemption from income tax, value-added tax, purchase tax on luxury goods, import duty, import tax, and excise.
He said the government has also continued to increase the production of export-oriented products that were connected to global supply chains.
The country’s special economic zones attracted 32.76 trillion rupiahs (about 2.29 billion U.S. dollars) of investment as of July this year, Hartarto said.
He added that the companies operating in the special economic zones have made exports valued at 3.66 trillion rupiahs (about 256.2 million U.S. dollars) worth of goods from January to July this year.
“As of July, 166 business entities have invested in special economic zones and created 26,741 jobs,’’ said Hartanto during the webinar.
According to Secretary of the National Council for Special Economic Zones Enoh Suharto Pranoto, there are currently 19 KEKs in Indonesia, 12 of which in operation and seven under construction. (Xinhua/NAN)