Indonesia has set an ambitious target of 8% economic growth, with a strong focus on attracting investment. However, challenges remain in the investment climate, particularly in Rule of Law indicators such as property rights, government integrity, and court effectiveness, which still lag behind global standards.
The Indonesian Business Council (IBC) believes achieving this target will require strategies similar to those that transformed Shenzhen, China into a globally recognized Special Economic Zone (SEZ).
To explore this potential, IBC convened a Focus Group Discussion on 2 October 2024 under the theme “Strategy for Effectively Establishing Special Economic Zones”. The session featured expert speakers Marty Natalegawa, Suryopratomo, Prof. Hikmahanto Juwana, and Eri Hertiawan, alongside IBC members representing diverse sectors. Discussions centered on Batam and Bintan, emphasizing their capacity to be revitalized as investment powerhouses.
Key insights included the need to:
- Refocus SEZ development objectives for Batam and Bintan.
- Transform governance and upgrade infrastructure.
- Foster regional collaboration and align legal frameworks with global standards.
Prioritize regulatory reforms (including revisions to Law No. 30/1999), merit-based judicial appointments, globally aligned court protocols, and effective enforcement of rulings.
IBC views Batam and Bintan SEZs as critical test-beds for the incoming government’s ambition to boost foreign direct investment (FDI) and meet the 8% growth goal. The council stresses that initiating necessary reforms at the start of the new administration will be essential to realizing these aspirations.