Covid-19 Hinders Investment in Special Economic Zones

By Editorial Team 04/05/2020
Summary

Investment in Special Economic Zones (SEZ/KEK) began to be affected by the Covid-19 pandemic. SEZ national council secretary Enoh Suharto Pranoto said several potential investors were forced to postpone their investment this year due to the crisis. "Regional development has also been hampered due to restricted capital access and the existence of physical distancing policies," Enoh said.

The government is targeting investment in SEZ to reach Rp 95 trillion in 2024-2025. Up to the end of 2019, 15 special economic zones had been built and brought in investment commitments worth Rp 88.7 trillion. However, the commitment realization has only reached Rp 22.2 trillion with a workforce of 8,686 people. At the time, investment realization was low because investors chose to wait and see in the middle of the political year.

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