Indonesian President Joko Widodo has designated the Kura-Kura Bali area as the latest Special Economic Zone (SEZ). The main business activities in the Kura-Kura Bali SEZ will be tourism and creative industries, with the aim of accelerating job creation and regional development in Denpasar, Bali.
The regulation was set out in Government Regulation No. 23 of 2023 on the Kura-Kura Bali SEZ, signed by President Jokowi on April 5, 2023.
The first article of the regulation states that “this Government Regulation designates the Kura-Kura Bali Special Economic Zone”. The Kura-Kura Bali SEZ covers an area of 498 hectares in the South Denpasar District of Denpasar, and its business focus will be on tourism and creative industries.
According to the regulation, tourism refers to activities that support entertainment and recreation, meetings, incentives, exhibitions, and related activities.
On the other hand, creative industries aim to increase the value of intellectual property exploitation, such as creativity, skills, and individual talents into commercial products. Examples of businesses in this sector include multimedia content industries, communication technology, crafts and art objects, and fashion.
The Kura-Kura Bali SEZ is bordered by Serangan Village in the South Denpasar District, the city of Denpasar, and the Badung Strait to the north, east, south, and west, respectively.
According to Article 5, businesses that wish to enter and operate in the Kura-Kura Bali SEZ will be given a maximum period of 30 years from the date the regulation comes into effect.
This includes businesses that want to manage or invest in the SEZ. Article 6(1) states that “business entities as referred to in Article 5 paragraph (1) shall carry out the development of the Kura-Kura Bali Special Economic Zone until it is ready to operate, for a maximum period of 36 (thirty-six) months from the date this Government Regulation comes into effect”.
Coordinating Minister for Economic Affairs Airlangga Hartarto has previously stated that the development of the Bali SEZ will require an investment of IDR 104 trillion for the next 30 years.
The SEZ is expected to create 35,000 new direct jobs and 64,000 indirect jobs, and is projected to save USD 31.8 billion or approximately IDR 481.64 trillion (assuming an exchange rate of IDR 15,146 per USD).
