TEMPO.CO, Jakarta - Azhar Lubis, deputy director for investment monitoring and implementation at the Investment Coordinating Board (BKPM), said that Batam and Bintan were not included in the special economic zones (KEK), since the two areas had been established as Free Trade Zones (FTZ).
“The government has established Batam, Bintan, Karimun and Sabang as Free Trade Zones, so they are not categorized as special economic zones,” Azhar told Tempo in a telephone conversation on Saturday, November 7, 2015.
Azhar explained that the areas had their on incentives and facilities, such as free import duty, customs, and value added tax.
Azhar added that since 2007, no more areas had been established as special zones until a law on special economic zones was issued.
The government will provide special facilities, such as tax incentives, for eight special economic zones as a part of the sixth economic policy package. The eight special economic zones facilitated with tax holiday, tax allowance and income tax incentives are Tanjung Lesung (Banten), Seimangke (North Sumatera), Palu (Central Sulawesi), Bitung (North Sulawesi), Mandalika (West Nusa Tenggara), Morotai (North Maluku), Tanjung Api Api (South Sumatera), and Maloibatuta (East Kalimantan).
ARIEF HIDAYAT
