Opportunities in Indonesia’s Special Economic Zones – Latest Issue of ASEAN Briefing Magazine
The latest issue of ASEAN Briefing Magazine, titled “Opportunities in Indonesia’s Special Economic Zones”, is out now and currently available to subscribers as a complimentary download in the Asia Briefing Publication Store.
In this issue:
- An Introduction to Special Economic Zones in Indonesia
- Structure of Tax Incentives
- Choosing the Ideal Investment Location
Buoyed by the success of its free trade zones, Indonesia’s government made the development of special economic zones (SEZ) a priority policy in 2014. As of 2022, there are 19 SEZs, of which 12 are in operation and the remaining are in the construction phase. Through the SEZs, Indonesia aims to attract over US$50 billion in foreign investment in the next decade.
The SEZs are designed in this way to maximize the ready availability of local resources and serve as specialized primary industries. Further, through these SEZs, the government hopes to drive economic growth away from the island of Java, which currently contributes to 60 percent of Indonesia’s GDP and 60 percent of the total population.
For foreign investors, entering Indonesia’s special economic zones and taking full advantage of what they offer requires a long-term outlook. Having this long-term outlook will allow the foreign entity to benefit from Indonesia’s unique advantages – competitive labor costs, huge domestic market, and continuing expansion of SEZ land – a constraint many businesses are experiencing in other ASEAN markets.
In this issue of the ASEAN Briefing magazine, we provide an overview of Indonesia’s special economic zones and explore the tax incentives available. Finally, we discuss choosing the ideal location in Indonesia’s SEZs by highlighting select zones.
ASEAN Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia and maintains offices throughout ASEAN, including in Singapore, Hanoi, Ho Chi Minh City, and Da Nang in Vietnam, Munich, and Esen in Germany, Boston, and Salt Lake City in the United States, Milan, Conegliano, and Udine in Italy, in addition to Jakarta, and Batam in Indonesia. We also have partner firms in Malaysia, Bangladesh, the Philippines, and Thailand as well as our practices in China and India. Please contact us at firstname.lastname@example.org or visit our website at www.dezshira.com.