Jakarta :The Special Economic Zones (SEZs) in Sumatra, particularly along the Malacca Strait, will face competition from those established in Singapore and Malaysia.
"We should be concerned about the SEZ built in Singapore and Malaysia. Those are our rivals," Coordinating Minister for Economic Affairs Darmin Nasution said here, Monday.
The operators of SEZs should offer incentives, in terms of services and licensing, to compete with other economic areas in Singapore and Malaysia.
Meanwhile, Aceh Governor Irwandi Yusuf supported the acceleration of the realization of Arun SEZ in Lhokseumawe, Aceh province, to improve the regional economy. The land status in the area has been fully certified.
The consortium of several state-owned enterprises, such as energy company PT Pertamina, fertilizer company PT Pupuk Iskandar Muda and seaport operator PT Pelindo I, as well as companies owned by the Aceh administration, have established PT Patriot Nusantara Aceh as the operator.
The Arun SEZ in Lhokseumawe focuses on the energy sector, petrochemicals, agroindustries, logistics, food supporting industries and craft paper.
According to the government regulation, Arun Lhokseumawe SEZ is spread over 2,622.48 hectares (ha), including 1,840.8ha in Arun Natural Gas Liquefaction Area in Lhokseumawe, Aceh Province; 582.08ha in Dewantara, North Aceh District; and 199.6ha in Jamuan, North Aceh District.
Arun Lhokseumawe SEZ consists of an export processing zone, a logistics zone, an industrial zone, an energy zone and a tourism zone.
Edib Muslim, a member of SEZ National Board, earlier said that the Arun SEZ in Aceh Province would be the center of Acehs growth, which would boost the economy in the western area of Indonesia.
The economic area should be able to optimize the potential of the local economy.
The development of the area will help absorb a large number of labor from various job sectors.
It is estimated that the Arun SEZ can accommodate some 40 thousand workers.
"In my opinion, it can be more than that if the area is managed well," Edib noted.
Source: ANTARA News