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INDONESIA'S MINISTER PROPOSES SPECIAL ECONOMIC ZONE STATUS.
JAKARTA, July 3 Asia Pulse - Industry Minister Fahmi Idris said industrial areas should also have the chance of enjoying the status of Special Economic Zone (KEKS) as they were producing many goods for export.
"Special Economic Zone status should also be given to industrial areas," the minister said here over the weekend in connection with his ministry's target to build special economic zones in a number of areas in Indonesia.
He said industrial areas, particularly in Jakarta and its surroundings, were contributing a lot to the country's exports, so that it was also reasonable if they were developed into special economic zones.
The minister explained that industrial areas in Jakarta and its surroundings contributed Rp15 billion to the country's exports in 2005, higher than that of Batam, whose contribution was only Rp4.6 billion.
"Batam's contribution to national exports was only about four per cent, while industrial areas' share could be bigger than that," the minister said.
In 2005, the country's exports stood at US$86 billion, of which US$58 billion was obtained from non-oil and gas exports.
Fahmi said the aim of developing KEK zones was to increase investment and exports. Industrial areas so far had contributed significantly to the national export performance.
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