SEMARANG - The government expects the Kendal Industrial Estate, whose status will be raised to Special Economic Zone (SEZ) this year, to attract US$ 5 billion in investment in the next five years.
“Inshallah (God willing) this year Kendal’s status will be raised to SEZ with 60% of the products manufactured for export purposes,” said Central Java Provincial Government Economic and Development Assistant Peni Rahayu on the sidelines of the Indonesian Port Enterprises’ Association’s (ABUPI) roadshow in Semarang as quoted by Bisnis Indonesia, Thursday (12/9).
Kendal’s new status as a SEZ is expected to attract more investors with numerous facilities related to permit process and tax relaxation. In addition, the SEZ is also expected to employ 20,000 workers as well as 60,000 workers in adjacent areas.
“With the SEZ status, we expect more investors will be attracted despite rising land prices because there are tax relaxations,” said Ms Rahayu. (MS)