To increase the growth of a country, usually the government will create a special land where the main goal is economic development. One of the systems in which an area is created with the aim of economic development is SEZ.
Special Economic Zones or SEZs are needed to increase a country's income and are focused on investment.
Have we ever felt that we are in a city that has facilities and advantages that are different from other cities? An easy example is in terms of access and income for each individual. It will definitely differ according to how developed an area is.
In a special area designated for the sake of increasing its economic resources, usually the city system will be different by prioritizing investment needs. This special area has long been implemented in various countries including Indonesia.
However, the question is whether the development of special economic zones is important to do? To be more clear, we will review in full about KEK first, starting from the goals to the benefits of implementing SEZs in a country.
Apa itu KEK
SEZ is the development of an area that has been estimated in geostrategic and geoeconomic aspects for investment purposes by offering certain superior facilities. That way, all activities in it will be easier when compared to other cities.
SEZ is an area intended for companies to develop their business and facilitate their activities. This is because the existing system in this special area is allocated for the benefit of the company.
In developing the industrial sector, it becomes one of the characteristics of this region. SEZ is an area that covers all industrial sectors as well as services. Its activities are also focused on the advantages of overseas activities.
Therefore, in this sector area there will be some special incentives as well as providing some special facilities for land tenants by business companies. Of course, this will be much different if we rent land in other cities where there is no special regulatory system that is intended for economic business development.
Sejarah Kawasan Ekonomi Khusus (KEK)
In Indonesia, the development of SEZ started in 2009 when the government stipulated law number 39 of 2009 itself for this special area. The development of this special area is also intended with certain regulations and systems in accordance with the Indonesian system.
The creation of this area is intended for economic excellence where there are activities such as investment to accelerate economic growth.
At first, special economic zones were established by the government with the aim of accelerating regional growth and carrying out equitable development for the national sphere. However, due to the increasingly complex development of the times, the government also sets goals for the interests of specialists in certain fields. Therefore, the government focuses on geostrategic and geoeconomic.
In fact, since the early 90s, Indonesia has had certain regulations where there is indeed a special interest for the development of the region. One of the special area regulations is known as bonded zones, industrial areas, and integrated economic zones. All of these special area classifications are ultimately intended for economic development.
SEZ goals
There are several separate objectives for the establishment of a special area for Indonesia.
1. Increasing KEK Economic Growth
By focusing on all activities and points in making this area economic growth, it means that the main goal is to increase the growth of a region.
Given that there are usually differences in income and function of each region in Indonesia. Therefore, in order to focus on state revenue, a special area was created.
2. Production of New Economic Activities
Because in this case it is intended to increase the economy, the existing land in this area will be utilized as economic activity. There will be many industrial sectors in this region as production sites.
In this region there will also be many companies from various sectors because the entire regional regulatory system will prioritize the benefits of business companies.
3. Conduct Domestic and International Investment Promotion
By utilizing the company as much as possible, all functional SEZs will be allocated so that marketing for the business runs optimally. Promoting domestic and international investment is one of them.
Attract investors to every company in the region from all over the world to international. This effort is made because investment increases economic capacity for production.
4. Pembangunan Fasilitas Infrastruktur KEK
The factor responsible for growth is that there are supporting facilities for the running of the industrial sector. This facility can be in the form of special incentives or special regulations which benefit the sector.
Not only that, the construction of infrastructure facilities like this cannot be applied to areas which are not specifically designated for economic growth. This is because the functions and objectives may not reach the KEK goals.
Manfaat Kawasan Ekonomi Khusus (KEK)
The application of a regional system like this targets the development of its territory. There are several specific benefits from the results of implementing the objectives of the KEK, as follows.
1. Increase exports of goods and services to KEK
Exports and economic expansion are directly correlated. The amount of goods and services produced is indicated by the country's GDP. As a result, exporting goods and services to other countries increases GDP, creates jobs, and promotes economic growth.
In addition, it allows balance of payments, which has an impact on a country's currency. Money moves faster, which influences the country's fiscal, monetary, and political policies.
2. Attracting Foreign Investors KEK
If it is focused on land used for companies, it is certain that its activities will not be far from attracting investors. The existence of a special area means that investors will also think that what they invest for sure will not be a loss considering that all activities are deployed for economic growth.
This means that a region will also ensure that every existing company will continue to run and develop well for the advancement of SEZ.
3. Creating job opportunities in KEK
With companies being established in the area, this means that there will be an increase in the need for human resources. With the increasing need for human labor, it creates job opportunities for many people. There will also be many job opportunities from various sectors in every industry.
This also means that there will be opportunities where the welfare of the Indonesian people will increase due to job vacancies and an increase in income.
4. Attract Global Technology and Manufacturing Skills
Various industrial sectors certainly will not be separated from the use of technology. In the era of globalization where manufacturing skills are needed, the application of technology in every sector of life will increase.
Likewise in this region, of course there will be an increase in demand for technology. The increase in the use of this technology will also increase public knowledge on the use of technology in the SEZ special economic zones.
Pelajari Pentingnya KEK
A region or government can designate certain areas as economic zones to attract more investment.
As a result, a city may determine that a degraded neighborhood should be developed to provide more jobs or increase the number of businesses. A city might offer a commercial space rental discount for, say, the first five years as an incentive for the company.
The required activity can be simulated using a variety of rewards. Low interest rate loans, free or cheap rent, reduced business expenses, etc.
Conclusions
KEK will be regulated by the government which takes into account several considerations in order to prioritize the results of maximum special income. Every decision made will be reconsidered according to Indonesian rules and regulations.
SEZ regulations stipulate various minimum land requirements for various SEZ classes. Each SEZ has a processing area where the necessary infrastructure is built.
Special economic zones are not locations where business growth is encouraged. There, economic activity was allowed to develop because the government did not stop it as hard as it could.
Private property rights are upheld, regulations have been relaxed significantly so that corporations can thrive, and taxes are minimal.
When the government's central planning causes other economies to suffer, SEZ gives freedom to companies in Indonesia that are under economic pressure to operate.
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