Gov’t to Develop New SEZ in Malang Regency
In a bid to develop economic activities in East Java Province in order to boost national economic development, the Government has decided to develop a special economic zone (SEZ) in Singosari, Malang Regency.
Regarding this matter, President Joko “Jokowi” Widodo on 27 September 2019 has signed Government Regulation (PP) Number 68 of 2019 on Singosari Special Economic Zone.
“The Singosari SEZ covers an area of 120.3 hectares located in the Singosari District, Malang Regency, East Java Province,” Article 2 of the PP reads.
The Singosari SEZ consists of tourism and technology development zones.
In addition, according to the PP, Regent of Malang stipulates a business entity to build and manage the SEZ within 90 (ninety) days after the Government Regulation is enacted.
“The business entity referred to is responsible for financing the development and management of the Singosari Special Economic Zone,” reads Article 5 paragraph (2) of the PP.
The business entity also undertakes the development of the Singosari SEZ until it is ready to operate within a maximum period of 3 (three) years after the Government Regulation is enacted.
Furthermore, the National Council for Special Economic Zones will conduct an annual evaluation of the development of the Singosari SEZ.
If the SEZ is not ready to operate within the third year of the implementation date, the SEZ National Council may: a. make changes in the area or zone; b. extend the development not later than 2 (two) years; c. replace the business entity; and / or d. proposed cancellation and revocation of the Singosari SEZ.
In the event that the Singosari SEZ is not ready to operate even until it reaches the extension period not caused by negligence or force majeure of the business entity, according to the PP, the National Council can add more extension of the development period.
“This Government Regulation comes into force on the date of its promulgation,” reads Article 7 of the PP, which was signed by Minister of Law and Human Rights Yasonna H. Laoly on 27 September 27 2019. (Pusdatin / ES)
Translated by: Estu Widyamurti
Edited by: Mia Medyana