Indonesia’s Investment Ministry Optimistic on New Economic Growth Zone Lebak District
Lebak District to benefit from potential investment influx upon becoming a new economic growth zone.
The construction of better road and transport infrastructure is bringing positive change to the Lebak District. Located in the Banten Province of the Republic of Indonesia, Lebak has been earmarked as a new economic growth zone. This is subsequent to the massive construction project of a toll road that will connect Lebak with Jakarta.
Indonesia’s Investment Ministry is optimistic about the potential era of growth and investment that this will usher in. It is also an excellent start for the newly minted Ministry. The Investment Ministry is the upgraded version of the Investment Coordinating Board, Badan Koordinasi Penanaman Modal of BKPM. Previously a mandated government agency, BKPM now enjoys the status of a full ministry in the Government.
The Ministry was recently established as a strategic move towards enhancing the ease of doing business in Indonesia. Its purpose of increasing domestic direct investments (DDI) and foreign direct investments (FDI) remains unchanged. The Investment Ministry will continue to act as the go-to point for both DDIs and FDIs. In line with these changes, the Government has set a total investment realization of Rp. 900 trillion for 2021.
Connecting Lebak District and Jakarta
The toll road construction project will cultivate development and expansion while improving the welfare of the Lebak communities. The Ministry recently met with the Banten Provincial Chamber of Commerce and Industry and Lebak Islamic scholars (ulama) on the matter.
The proposed toll road project will kickstart in July 2021 with the inauguration of the first segment’s construction. The subsequent two segments are expected to be completed by 2023 and will be built in parallel. Funding for the construction of one of the segments comes in the form of a loan from China.
A Collaborative Effort to Boost the New Economic Zone
The Investment Ministry will be working with several local authorities to develop Lebak District sustainably. This includes the Lebak Development Planning Office (Bappeda), which will be collaborating with the Bogor Agricultural University (IPB University). The aim is to develop Lebak’s farming sector, including a 14-hectare aquaculture business with the potential to attract investors.
The Ministry will also be working with the Banten Provincial Chamber of Commerce and Industry and local farmers. They will seek to develop Lebak into a patin fish (Siluriformes) cultivation business center. The objective is to have aquaculture farms capable of producing 700 tonnes of patin per month. This will substantially boost the local economy and entrench Lebak as a new economic growth zone.
There are also plans for the development of an industrial zone ancillary to the toll gate area. The Investment Ministry has targeted a 3,000-hectare area viable for the project and will be sourcing for investors.
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