The Special Economic Zone (SEZ), specifically KEK Galang Batang, is proving to be a source of pride for Indonesia, yielding positive impacts for both investors and the local communities by generating employment opportunities and fostering prosperity. KEKs are expected to be a new source of growth based on the strengths of their respective regions. Several multiplier effects are evident in KEKs, such as new economic activities, as followed by related economic endeavors, cumulatively enhancing the regional Gross Regional Domestic Product (PDRB) through tax revenue. National Strategic Project (PSN) Status as per Government Regulation No. 40 of 2021, supported by infrastructure development in the surrounding areas, mostly also part of PSNs and this has far-reaching implications for local economic activities and movements. Also, investment growth and job creation as the establishment of new economic centers generates diverse economic activities, expanding job opportunities on a broader scale.
KEK Galang Batang, strategically located on Bintan Island, Riau Archipelago, stands out as one of the influential KEKs, functioning as a choke point in the Malacca Strait. Its advantageous location creates favorable business prospects, and it is anticipated to contribute significantly to the national economy through the downstream processing of bauxite. Developed as a hub for the processing of mineral resources, specifically bauxite, and its derivative products through refineries and smelters. KEK Galang Batang, a source of pride for the Riau Archipelago Province and Indonesia, is a vital contributor to both Regional Original Revenue (PAD) and national foreign exchange reserves. In 2023 alone, KEK Galang Batang exported processed bauxite as smelter-grade alumina (SGA) with a cumulative export value of IDR 9.4 trillion. The KEK is positioned to be one of the downstream processing KEKs alongside KEK Gresik, with a cumulative investment reaching IDR 17.9 trillion, showcasing commendable progress. Aligned with the President's directives, the KEK Galang Batang continues its downstream efforts by constructing smelter facilities, aiming to make Indonesia an exporter of aluminum ingots, adding value to bauxite processing. KEK Galang Batang is expected to employ 23,200 individuals, potentially creating multiplier effects in the region. As of now, it has provided jobs to 4,547 people, with plans for additional workforce absorption. The anticipated development investment in KEK Galang Batang is estimated at IDR 36.25 trillion until 2027, indicating sustained growth and prosperity.
