Malaysia and Singapore want to create EEZs, coordinating minister Airlanga insists Indonesia should compete

Jakarta – Malaysia and Singapore are reportedly developing the Johor-Singapore Special Economic Zone (JS-SEZ) project. This means that this region is close to the Batam and Bintan regions.

The Coordinating Minister for Economic Affairs, Airlanga Hartarto, also responded to this. According to him, the development is legal.

“Yes, it is called competition, Malaysia and Singapore can do it, other countries can do it,” Airlanga said at the St. Regis Hotel on Thursday, July 11, 2024.

Airlanga therefore believes that Indonesia should increase its competitiveness. This is so that the Batam and Bintan EEZs can compete with neighbouring countries.

“So we have to compete, we have to be competitive,” he said.

As for the EEZs in areas around Batam and Bintan, they include the Galang-Batang EEZ, the Tanjung Sauh EEZ connecting Batam and Bintan, and the Batam Aero Technic EEZ.

On the other hand, the Indonesian government has also provided a number of incentives, both fiscal and non-fiscal, to attract investors to Indonesian SEZs.

According to the official KEK cycle, the government’s tax incentives include reductions in corporate income tax, value-added tax (VAT) and tax incentives on sales of luxury goods (PPnBM).

Following a 50 to 100 percent reduction in regional taxes and fees, special facilities for tourist SEZs and customs and excise tax benefits.

Meanwhile, from a non-fiscal perspective, the government offers incentives such as ease of obtaining permits and licenses, no export obligations and land ownership for 80 years.