ASIATODAY.ID, JAKARTA – The Indonesian government will focus foreign investment in Special Economic Zones (SEZ). This year, there are several SEZs that are a priority to be further developed.
The Coordinating Minister for the Economy of Indonesia, Airlangga Hartarto, explained that in a meeting with President Prabowo Subianto at the Merdeka Palace, on Tuesday, March 18, the development of the SEZ development in Batang Regency, Central Java Province was discussed.
“President Prabowo will go to the field on Thursday, and the plan is that there will be a Two Countries Twin Parks (TCTP) collaboration between Indonesia and Fujian Province (China) to encourage industrial investment in the Batang SEZ, and they plan to invest around IDR 16 trillion. This was discussed when President Prabowo met with President Xi Jinping, so this is a follow-up to that meeting,” explained Airlangga.
In addition, Airlangga also explained the development of the Nongsa Digital Park SEZ in Batam which will be expanded in the future because there are plans to establish several data centers there. Then, it was also explained regarding the Singhasari Special Economic Zone, where King’s College London is currently standing, followed by the establishment of Queen Mary of London University and Imperial College London.
The development of the international agreement negotiation process was also discussed by Airlangga with President Prabowo.
“With the OECD, we have sent some initial memorandums that are still in process, and later there will be a meeting in June 2025 which will certainly determine the next stages. Then we also discussed the IEU-CEPA cooperation plan which only has two issues left, namely related to export duties and import permits,” said Airlangga.
Furthermore, there will also be a joint committee meeting between Indonesia and Russia on April 14-15, 2025 to formulate the final results of the Eurasian Economic Union FTA agreement, which is a collaboration between Indonesia and five former Soviet Union countries, namely Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.
“Currently, 14 of the 15 chapters of discussion have been completed. So the President will visit Russia in June 2025, and it is hoped that during that visit the principle agreement can be signed,” said Airlangga.
Airlangga also conveyed about the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CP-TPP) which is a free trade agreement between 12 countries in the Asia-Pacific region, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, Vietnam, and the United Kingdom.
“By processing accession (to) CP-TPP, we hope to open the markets of Mexico, Canada, Peru, and the United Kingdom. This will certainly open up export market opportunities where there is a direct tariff reduction when we enter CP-TPP, and the CP-TPP standard does not apply the trade-related aspect of intellectual property rights. This is one of the good things about the CP-TPP agreement,” concluded Airlangga. (AT Network)
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