– Aiming to transform Indonesia’s digital economy using special economic zones specialized in digital industries as a stepping stone –
– Starting from other specialized businesses such as tourism and leisure, evolving into a hub for IT and data businesses –
Event Outline
On November 9, Indonesia's MOTIE and the Special Economic Zone Committee listened to the know-how of how regions specializing in the digital industry among Indonesia's special economic zones were able to specialize in the digital industry. A policy discussion meeting was held to find the direction of the future. In particular, this forum was held to determine the direction to develop the digital industry in the special economic zone in the future, in which special economic zones will receive funds and deregulation support from the government for digital transformation through the Indonesian special economic zone promotion policy announced last year. In particular, there are three representative special economic zones, Nongsa, Lido, and Singhasari, which are developing into Indonesia's IT hub by specializing in the digital industry. are doing
Nongsa Special Economic Zone
Nongsa Special Economic Zone, which first opened as Nongsa Digital Park on Riau Island in Batam in 2018, was newly designated as a special economic zone by the Indonesian government in June 2021 to intensively foster the digital industry. In the case of Nongsa Special Economic Zone, it is adjacent to Indonesia and Malaysia, and has an airport and port nearby, so it has excellent access to Jakarta and neighboring countries. In addition, the Batam region to which the special economic zone belongs is designated as a free economic zone (FTZ), so products traded through the special economic zone will enjoy simplified customs procedures and tariff benefits.
Nongsa special economic zone announcement screen
Nongsa Special Economic Zone is currently home to about 80 international startups, employing about 500 people, and has the infrastructure to work for an additional 700 people. In the early days of this special economic zone, many companies related to tourism, film production, and medical industries moved in, but as it was decided to build a 30,276m2 Nongsa data center as a joint venture between Singapore and Indonesia, related IT technology and infrastructure construction companies entered the area. Accordingly, structural improvement is being made as the center of the digital industry. Furthermore, the Nongsa IT Acamdemy, which has a scale of 4 buildings, was recently opened to foster IT professionals, and the special economic zone plans to contribute to fostering human resources that will support Indonesia's digital economy construction policy.
Bird's eye view of Nongsa Special Economic Zone
In the case of the Nongsa Special Economic Zone, it is in a location where a number of international submarine fiber optic cables pass, and it is in a favorable position to build a data center as several Internet providers have been scrambling to build base stations. In response, Singapore invested in a joint venture with Indonesia early to build and use a data center, and the Indonesian government also announced that it would build an additional national data center by 2025 within the special economic zone. As such, Nongsa Special Economic Zone is attracting attention as a digital special economic zone specialized in data center and data technology industries in the future.
LIDO Special Economic Zone
Lido MNC City is a special economic zone specializing in tourism and is being developed by Indonesia's largest media group MNC. The special economic zone will be developed in three main areas: tourism, creative economy, and IT infrastructure.
Bird's Eye View of Lido Special Economic Zone Development
In the tourist area, MNC Group theme park, media library, play-education convergence theme park, golf course, resort, etc. will be built. The creative economy zone will include a movie theme park and a music art center.
Lastly, in the IT infrastructure area, a data center that oversees the data storage of the MNC group will be built, and the data center will be opened to the private sector to make it available to ICT businesses and startups, and a co-working space will be provided for MOTIE in Indonesia. It was decided to support the next unicorn development project. In addition, it was decided to attract a techno college in the area and establish a startup incubator hub.
MNC Group Announces Development Direction of Lido Special Economic Zone
Lastly, in the IT infrastructure area, a data center that oversees the data storage of the MNC group will be built, and the data center will be opened to the private sector to make it available to ICT businesses and startups, and a co-working space will be provided for MOTIE in Indonesia. It was decided to support the next unicorn development project. In addition, it was decided to attract a techno college in the area and establish a startup incubator hub.
In particular, Lido Special Economic Zone is making efforts to become a transportation hub based on advanced digital technology by strengthening the convergence between transportation infrastructure and IT in the future. MNC Group recently signed an MOU with PT KAI, an Indonesian state-run railway company, and agreed to relocate the Cigombang railway station to the Lido special economic zone, and announced a plan to build an intercity express bus terminal in the special economic zone. The railway station and intercity bus terminal are linked with the data center currently being built, and are expected to contribute to strengthening the digital industry, such as smart traffic control according to demand, providing real-time arrival times, and collecting traffic information using big data.
Singhasari Special Economic Zone
Singhasari Special Economic Zone was also a special zone specialized for tourism in the beginning, but now it is one of the regions where the proportion of digital industry is gradually increasing. As shown in the photo below, the Dong Special Economic Zone has a good position as a special tourism zone as it is surrounded by various Indonesian natural landscapes, historical relics, and modern tourist spots. Therefore, investments have been made continuously for accommodation facilities such as hotels, resorts, and leisure sports in the special zone.
Distribution of major tourist attractions near Singhasari Special Economic Zone
However, recently, the Singhasari Special Economic Zone announced the establishment of a digital industry special zone, Computing and Commerce Park, in the special zone through a joint venture with Amazon, and is trying to transform it into an IT-specialized zone. In this area, a cloud technology center will be built that will contribute to the Indonesian government's digital economy transformation policy by utilizing Amazon's big data management and cloud technology. Indonesia's state-owned telecommunication company Telkom also announced that it is planning to invest in IT infrastructure facilities in the area. In addition, as a number of digital content companies began to move in, Singhasari Special Economic Zone promised to build a content hub center in the same area, and announced a plan for industry-university cooperation to collaborate with Malang City to direct IT high schools in the city to find employment in the special economic zone. , is striving to be reborn as a hub of the digital industry.
Singhasari Special Economic Zone Development Plan Announced
implication
The Indonesian government is concentrating on the advancement of IT technology and expansion of digital infrastructure to achieve a digital economy at the national level. In particular, it is believed that such advancement of IT technology can be achieved quickly through synergy when the same IT technology companies are integrated. plan.
Therefore, by actively utilizing innovative IT technologies such as Internet of Things, big data, and cloud technology in manufacturing, Korean companies will advance as a good partner in the development of Indonesia's manufacturing industry by maximizing production efficiency and enriching technologies and know-how to minimize resource waste. Opportunities to do so are expected to increase.
Source: Indonesia MOTIE, Indonesia Special Economic Zone Committee Nongsa, Lido, Singhasari Special Economic Zone, KOTRA Surabaya Trade Center