Indonesia government has made the development of the country’s special economic zones (SEZ) a priority policy with the aim of attracting over US$50 billion in foreign investment over the next decade, particularly for SEZ-oriented manufacturing.
The SEZs serves as a hub for selected activities from logistics, to export processing activities, to tourism. They are designed in this way to maximize the ready availability of local resources and cater to upstream and downstream industries.
SEZ has its primary activities in manufacturing, particularly garment and textiles, automotive furniture, electronics, and food and beverages. One of SEZ is at in Karawang, West Java province, one of Indonesia’s main manufacturing hubs.
Investors operating in Indonesia SEZs will find they are supported by well-integrated infrastructure from highways, drainage systems, high-speed internet and communication systems, ports, and airports. Moreover, the Indonesian government has prepared an array of fiscal and non-fiscal incentives, such as an easier immigration process, corporate income tax reductions, and exemptions on import duties and excise duties, among many others.