Heaptalk, Jakarta — The Indonesian government is targeting the Special Economic Zone (SEZ) of Tanjung Sauh to attract a total investment of Rp199.6 trillion, approximately US$12.25 billion (US$1 equals Rp16,286). This zone is also expected to create 366,087 jobs by 2053.
Previously, President Joko Widodo established this special economic zone on Tanjung Sauh Island, Batam City, Riau Islands Province, through Government Regulation 24 of 2024. Spanning an expansive 840.67 hectares, Tanjung Sauh SEZ’s strategic location is poised to accelerate job creation and regional development in Batam City, bolstering regional and national economic growth.
According to Acting Secretary General of the National Council of Special Economic Zone, Rizal Edwin Manansang, optimal development of the area is expected to contribute Rp166.81 trillion cumulatively to the GDP of the Riau Islands. “The development of Tanjung Sauh SEZ is expected to boost Indonesia’s competitiveness and significantly impact the regional economy through investment revenues of Rp199.6 trillion and job creation, both directly and indirectly, of 366,087 people when fully operational over 30 years,” Edwin stated (06/12).
Becoming a hub for electronic component industries
In more detail, Tanjung Sauh SEZ has a business plan focusing on production and processing, energy development, and logistics and distribution. The area will become a hub for developing electronic component industries such as PBC, RFID, GPS, CCTV, semiconductors, and electronic product assembly industries. Additionally, Tanjung Sauh SEZ will serve as a research and development center for energy and a producer of alternative, renewable, and primary energy, which is expected to meet the industrial and household energy needs in Batam-Bintan.
Seeing the infrastructure, the presence of a port in Tanjung Sauh SEZ between Batam and Bintan will be a crucial bridge for logistics mobilization between the Riau Islands and national and international markets. This area will also function as a modern gateway port, capable of handling up to 5 million TEUs, and become a logistics center in the Batam-Bintan region.
With the issuance of Government Regulation Number 24 of 2024, there are now 21 SEZs spread across Indonesia. As of March 2024, they had recorded investments of Rp187.5 trillion and created 126,506 jobs. The general objective of developing SEZs is to increase investment, exports, import substitution, job creation, and innovative development models through industrial and service development. These zones target globally competitive industries, international-standard tourism services, educational and health services, and the digital economy.
