OVERVIEW

With the ultimate aim of boosting national economic growth in mind, the Government of Indonesia is constantly implementing strategies which, while independently developed, are modeled on the successes of other countries. One such strategy has been the establishment of Special Economic Zones, as such zones have a proven track record of being able to create environments conducive to investment, as well as export and trading activities.[1]

Indonesia’s current Special Economic Zones are in fact neither the first nor the only economic zones to have been developed in the country. Indeed, the government has prior experience in the setting up of several other types of zone, and these zones all possess a number of similar characteristics. Such zones have included free-trade and seaport zones (kawasan perdagangan bebas dan pelabuhan bebas – KPBPB), bonded zones, industrial zones and integrated economic-development zones (kawasan pengembangan ekonomi terpadu – KAPET).[2]