JAKARTA, RAKYAT NEWS – Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the newly established Johor-Singapore Special Economic Zone (SEZ) by Malaysia and Singapore draws inspiration from Indonesia’s successful development of Special Economic Zones (KEK).

“We cannot stop other countries from copying what we’ve done. We just have to compete,” said Airlangga after attending the IBC Business Competitiveness Outlook 2025 event in Jakarta on Monday.

The Johor-Singapore SEZ was agreed upon by Malaysia and Singapore to attract global innovative investments. The agreement was signed by Malaysia’s Prime Minister Anwar Ibrahim and Singapore’s Prime Minister Lawrence Wong, who witnessed the exchange of documents in Putrajaya on January 7, 2025. The leaders also held a joint media briefing, which was broadcast online from Kuala Lumpur.

Both leaders expressed their confidence that the SEZ would boost regional economic growth and provide substantial benefits for both countries.

Airlangga emphasized that Indonesia’s success with SEZs has allowed the country to produce value-added products derived from critical minerals. He noted that neighboring countries, particularly Malaysia, have recognized this success and are looking to replicate it, especially in sectors such as digital innovation, artificial intelligence (AI), and cloud computing.

In Indonesia, SEZs have garnered significant investment, amounting to IDR 82.6 trillion in 2024, and have created jobs for 42,930 people.

Furthermore, since 2012, Indonesia’s SEZs have attracted a cumulative investment of IDR 256.7 trillion, generating 156,208 jobs and involving 394 businesses.

Indonesia’s SEZs have expanded rapidly, with 24 SEZs now operating across various sectors, including manufacturing, digital economy, healthcare, education, and maintenance, repair, and overhaul (MRO) services for aircraft. (Uki Ruknuddin)

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