INDONESIASPECIAL ECONOMIC ZONES

Republic of IndonesiaThe National Council for Special Economic Zone

SECRETARIAT

2

Basic Concept of SEZ EstablishmentThe basic concept of Indonesia SEZs is the preparation of areas which have accessibility to the global market or the

main resources (access to the sea port and or airport)

BUSINESS INIndonesia SEZ

Export

Process Zone

Logistic

Industry

Technological

Advancement

Tourism

Energy

Other Economic Activities

A range of incentives are given to boost their competitiveness and to attract investors to the enter the SEZs.

3

Institutional Framework

Indonesia SEZ

4

12 SEZs and its Primary Activities

Investment Opportunity in SEZ

5

Fiscal Incentives In SEZNO SUBJECT INCENTIVES/FACILITIES

1. CORPORATE INCOME TAX (PPh)

• Tax Holiday for Primary Activities 5 - 20 years depending on value of investment• Tax Allowance for other than Primary Activities and for Primary Activities that is not eligible to get Tax Holiday facility,

with detail:1. Reduction in net income of 30% of the amount invested, prorated at 5% for six years,2. Losses carried forward for 5 years and could be extended to 10 years,3. Accelerated depreciation and amortization,4. Dividends tax 10% or lower for treaty countries.

2. VALUE ADDED TAX (PPN) VAT is not collected for the entry of certain Taxable Goods from Other Places within the Customs Area (TLDDP).

3.EXEMPTION FROM IMPORT DUTY AND NOT COLLECTED IMPORT TAX (PDRI/Pajak Dalam Rangka Impor)

• Not Collected Import Tax including VAT, Sales Tax on Luxurious Goods, and/or corporate income tax article 22• Facilities are granted for the Import of:

1. Capital Goods by Business Entity / Developer for SEZ Development2. Capital Goods and Raw Material for Tenant.

4.DEFERRED IMPORT DUTIES

• Deferred import duties for imported raw materials that are used for production, capital goods and packaging• A tariff of 0% import duty is applied for finished goods which have 40% of local content (TKDN)

5. EXCISEExempt from excise for raw materials or auxiliary materials that are used to produced finished goods which are notexcisable goods

6. LOCAL TAX • Reduction of local tax and / or local retribution at a minimum of 50% and a maximum of 100%

7. GOODS TRAFFIC• Prohibited items: prohibited for export / import• Restricted items: Imports of goods to SEZ have not been subject to restrictions

8.SPECIAL FACILITIES FORTOURISM SEZs

• Stores that are located within Tourism SEZs can participate in the VAT refund scheme for foreign passport holders• Exemption for VAT and Sales Tax on Luxury Goods can be granted

6

Non-Fiscal Incentives In SEZ

NO. SUBJECT

1. NO NEGATIVE LIST

2. IMPORT LIMITATION IS NOT APPLIED

3. EASE OF DOING BUSINESS FOR PERMIT & LICENSING

4 FOREIGN PROPERTY OWNERSHIP IN TOURISM SEZ

5 SPECIAL REGULATION FOR LABOUR AND EMPLOYMENT

6 SIMPLE IMMIGRATION FORMALITIES

7 EASINESS FOR LAND TITLING PROCEDURES

8 INTEGRATED INFRASTRUCTURE SUPPORT FROM GOVERNMENT

9 ONE STOP SERVICE BY ADMINISTRATOR

The government widely gives support with fiscal and non-fiscal incentives such as tax holiday, tax allowance, ease of custom services, immigration, labor, land and property access.

Through Online Single Submission investors can start their business almost immediately in SEZs. As required the government will support business in SEZs with necessary infrastructure.

Incentives and Facilities for

Investment in SEZs

7

Industrial SEZSei Mangkei | Galang Batang | Arun Lhokseumawe | Palu | Sorong

You can simply impress your audience and

add a unique and appeal to your Reports and

Presentations with our Templates. I hope and I

believe that this Template will your Time,

Money and Reputation.

MBTK | Bitung | Tanjung Api-Api

SEI MANGKEI SEZ

DEVELOPER

PT Perkebunan Nusantara III

AREA1,933.8 Ha

POPULATION

MINIMUM WAGES

Simalungun City: 864,786 People

Simalungun Regency:

USD 158.8

(2,224,036 IDR)

PROFILE

LAND AVAILABILITY

1,933.8 Ha

INFRASTRUCTURE

±115 km from Kualanamu Airport

±50 km from Kuala Tanjung Seaport

- Existing : 60 MW- Future Capacity : 61,6

MW (2019)

Road inside zone is fully constructed

Existing : 69 liter/second

Palm Oil Industry

Rubber Industry

Various Industry

LEGAL BASISGovernment Regulation(PP) Number 29 of 2012

Officially Operated:January 27, 2015

Simalungun Regency, North Sumatra Province

MASTERPLAN

BUSINESS OPPORTUNITY

9

GALANG BATANG SEZ

10

DEVELOPERPT Bintan Alumina Indonesia

AREA

2,333. 6 Ha

POPULATION

MINIMUM WAGES

Bintan: 154.584 People

Bintan:

USD 222.3

(3,112,618 IDR)

PROFILE

LAND AVAILABILITY

1049.94 Ha

INFRASTRUCTURE

20 km from Raja Haji Fisabilillah Airport

Seaport is integrated into the Zone

- Existing : 0.8 MW (By SOE)

- Future Capacity : a. 3.4 MW (By SOE)b. 6 x 25 MW (By

Developer)

2.6 km hot asphalt access road and is in the process to complete 8 km of roads in the area

- Existing : 60 liter/second- Future Capacity : 600

liter/second

LEGAL BASISGovernment Regulation(PP) Number 42 of 2017

Officially OperatedDecember 8th 2018

Bintan Regency, Riau islands Province

MASTERPLAN

BUSINESS OPPORTUNITY

AluminaIndustry

EnergyIndustry

Logistic & Export

BauxiteIndustry

ARUN LHOKSEUMAWE SEZ

11

DEVELOPERPT Patriot Nusantara Aceh (PATNA)

AREA2,622.48 Ha

POPULATION

MINIMUM WAGES

North Aceh: 593,492 People

Aceh Province:

USD 194.1

(2,717,750 IDR)

PROFILE

LAND AVAILABILITY

- 119 Ha for Plantsite- 46.38 Ha for

Community

INFRASTRUCTURE

13 km from Malikussaleh Airport

Krueng GeukuehSeaport is integrated into the Zone

- Existing : 219 MW- Future Capacity : 459

MW (2021)

Road is fully constructed with several sector need minor maintenance

Existing : 14.46 liter/second

LEGAL BASISGovernment Regulation(PP) Number 5 of 2017Officially OperatedDecember 14th 2018

North Aceh Regency, Lhokseumawe City, Aceh Province

MASTERPLAN

BUSINESS OPPORTUNITY

LhokseumaweCity

North Aceh

Oil & Gas Industry

Petrochemical Industry

PaperIndustry

AgroIndustry

Logistics

PALU SEZ

12

DEVELOPERPT Bangun PaluSulawesi Tengah (BPST)

AREA

1,500 Ha

POPULATION

MINIMUM WAGESPalu City:

USD 159.7

(2,235,900 IDR)

PROFILE

LAND AVAILABILITY

1,300 Ha

Palu City: 367.342 People

INFRASTRUCTURE

26 km from Mutiara SIS Al Jufri Airport

1 km from PantoloanSeaport

Road inside zone is fully constructed

- Existing : 15 liter/second- Future Capacity : 424

liters/second

LEGAL BASISGovernment Regulation (PP) Number 31 of 2014

Officially Operated :September 27, 2017

Palu City, Sulawesi Tengah Province

MASTERPLAN

BUSINESS OPPORTUNITY

Basic Infrastructure& Power Plant

ManufacturingIndustry

Logistic Supply Chain

Industrial Water Supply System & Water Treatment Plant

IndustrialEstate

Deep Port Business

- Existing : 20 MW - Future Capacity: Steam

electricity power plant 2 x 50 MW (2020)

SORONG SEZ

13

DEVELOPER

PT Malamoi Olom Wobok(MOW)

AREA

523,7 Ha

POPULATION

MINIMUM WAGES

Sorong: 82,784 People

Sorong:

USD 190.5

(2,667,000 IDR)

PROFILE

LAND AVAILABILITY

400 Ha

INFRASTRUCTURE

30 km from DomineEduard Osok Airport

- Arar Seaport is integrated into the Zone and under construction

- 35 km from Port of Sorong

- Existing : 9 MW - Future Capacity : 50

MW

Road inside zone is fully constructed

- Existing : 15 liter/second

- Future Capacity : 424 liter/second

LEGAL BASISGovernment Regulation (PP) Number 33 of 2016

Operational : End of 2019

Sorong Regency, West Papua Province

MASTERPLAN

BUSINESS OPPORTUNITY

Agricultural & Fisheries Industry

Logistic & Export

ShipyardIndustry

MALOY BATUTA TRANS KALIMANTAN SEZ

14

DEVELOPER

PT Maloy Batuta TransKalimantan

AREA

557.34 Ha

POPULATION

MINIMUM WAGES

East Kutai:

USD 191.3

(2,678,731IDR)

PROFILE

LAND AVAILABILITY

509.5 Ha

East Kutai: 833,625People

INFRASTRUCTURE

- 118 km from Tanjung Bara Airport

- 280 km from APT Pranoto Airport

- 406 km from Sultan Aji Muhammad Sulaiman Sepinggan Airport

Multipurpose MaloySeaport inside in SEZ is under construction (operating in 2019)

11.44 km access road

Future Capacity : 200liter/second (November 2018)

LEGAL BASISGovernment Regulation (PP) Number 85 of 2014

Operational : April 1 2019

Regency of East Kutai, East Kalimantan Province

MASTERPLAN

BUSINESS OPPORTUNITY

WoodIndustry

Palm Oil Industry

Logistic & Export

BITUNG SEZ

15

DEVELOPERPT Membangun SulutHebat (MSH)

AREA

534 Ha

POPULATION

MINIMUM WAGES

- Bitung City: 212,409 People

- Manado CIty: 430,133 People

North Sulawesi

Province:

USD 201.7

(2,824,286 IDR)

PROFILE

LAND AVAILABILITY

60.79 Ha

INFRASTRUCTURE

36 km from Sam Ratulangi Airport

7 km from Perikanan Samudera Seaport

Existing : 30 MW

415 m road inside zone is fully constructed

Existing : 15 liter/second

LEGAL BASISGovernment Regulation (PP) Number 32 of 2014

Operational : April 1 2019

Bitung City, North Sulawesi Province

MASTERPLAN

BUSINESS OPPORTUNITY

PharmaceuticalIndustry

Fisheries Industry

LogisticCoconut Industry

TANJUNG API-API SEZ

16

DEVELOPER

PT Sriwijaya MandiriSumsel (SMS)

AREA

2,030 Ha

POPULATION

MINIMUM WAGES

Banyuasin:

USD 195.4

(2,736,000 IDR)

PROFILE

LAND AVAILABILITY

153 Ha

Banyuasin: 833,625 People

INFRASTRUCTURE

70 km from Sultan Mahmud Badarrudin II Airport

2,5 km from TanjungApi-Api Seaport

- Existing : 2 x 60 MW- Future Capacity : 2 x

300 MW

65 km from Palembang –Tanjung Api-ApiNational Road

Future Capacity : 1,500,000 liter/second

LEGAL BASISGovernment Regulation (PP) Number 51 of 2014

Operational : 2019

Regency of Banyuasin II, Banyuasin Regency, South Sumatera Province

MASTERPLAN

BUSINESS OPPORTUNITY

Rubber Industry

Petrochemical Industry

Logistic

Palm Oil Industry

Tourism SEZTanjung Lesung | Tanjung Kelayang | Mandalika | Morotai

You can simply impress your audience and

add a unique and appeal to your Reports and

Presentations with our Templates. I hope and I

believe that this Template will your Time,

Money and Reputation.

TANJUNG LESUNG SEZ

18

DEVELOPERPT Banten West Java Tourism Development (BWJ)

AREA

1,500 Ha

POPULATION

MINIMUM WAGES

Pandeglang: 1,205,208 People

Pandeglang :

USD 168.1

(2,353,549 IDR)

PROFILE

LAND AVAILABILITY

1,430 Ha

INFRASTRUCTURE

180 km from Soekarno-Hatta International Airport

192 km from TanjungPriok Seaport

- Existing : 20 KV and 1 substation

- Future Capacity : 70 KV (2019)

- 5.11 km Row 50 is built- 1.7 km Row 35 A is built- 1,92 km Row 35 B is

built

Existing : 4.7 liter/second

LEGAL BASIS

Government Regulation (PP) Number 26 of 2012Officially Operated:February 23, 2015

Pandeglang Regency, Banten Province

MASTERPLAN

BUSINESS OPPORTUNITY

Accommodation Relaxation & Entertainment

F&B

Infrastructure Art & EducationAdventure Tourism

TANJUNG KELAYANG SEZ

19

DEVELOPER

Belitung Maritime Consortium

AREA324.4 Ha

POPULATION

MINIMUM WAGES

Belitung: 161,706 People

Bangka Belitung

Province: USD 196.8

(2,755,443 IDR)

PROFILE

LAND AVAILABILITY

INFRASTRUCTURE

37 km from HAS Hanandjoeddin Airport

27 km from TanjungPandan Seaport

- Existing : 67,000 kVA- Future capacity: 25

MVA

3.5 km road inside zone is available

Existing : 100 liter/second

LEGAL BASISGovernment Regulation (PP) Number 6 of 2016

Operational :March 14, 2019

Regency of Belitung, Bangka Belitung Islands Province

MASTERPLAN

BUSINESS OPPORTUNITY

Accommodation Relaxation & Entertainment

F&B

Infrastructure

25 Ha (Phase 1)

Art & EducationAdventure Tourism

MANDALIKA SEZ

20

DEVELOPER

PT ITDC

AREA

1,035.67 Ha

POPULATION

MINIMUM WAGES

Central Lombok: 922,088 People

West Nusa Tenggara:

USD 130.3

(1,825,000 IDR)

PROFILE

LAND AVAILABILITY

INFRASTRUCTURE

23 km from Lombok International Airport

46 km from Lembar Seaport

Existing: 30 MVAm

11 km road inside zone is fully constructed

Existing : 34 liter/second

LEGAL BASISGovernment Regulation (PP)Number 52 of 2014

Operational: October 20, 2017

Central Lombok Regency, West Nusa Tenggara Province

MASTERPLAN

BUSINESS OPPORTUNITY

Accommodation Relaxation & Entertainment

F&B

Infrastructure Smart Transportation

Health Service

n/a

MOROTAI SEZ

21

DEVELOPER

PT Jababeka Morotai

AREA

1.101, 76 Ha

POPULATION

MINIMUM WAGES

Morotai Island: 62,412 People

Morotai Island:

USD 207.1

(2,900,000 IDR)

PROFILE

LAND AVAILABILITY

INFRASTRUCTURE

10 km from PitoeMorotai Airport

- 20 km from WayabulaSeaport

- 10 km from DarubaSeaport

- Existing : 106 kVa- Future Capacity :

180 MW (2020)

1.6 km asphalt access road in the area

- Existing : 9.25 liter/second (pump well)

- Future Capacity : 30 liter/second

LEGAL BASISGovernment Regulation (PP) Number 32 of 2014

Operational :April 1 2019

Regency of Morotai Island, North Maluku Province

MASTERPLAN

BUSINESS OPPORTUNITY

Accommodation Leisure & Entertainment

F&B

Infrastructure

100 Ha

Fisheries

22

PH Floor MR 21 Building, Jalan Menteng Raya No. 21,

Central Jakarta, Indonesia

The National Council Secretariat for Special Economic Zone

The Coordinating Ministry for Economic Affairs

Republic of Indonesia

Phone/Fax : +6221-34832655/58

Email: info@kek.ekon.go.id

Web : http://kek.go.id

THANK YOU