Understanding The Benefits of Sanur’s Special Economic Zone

Michael Lenihan, founder of Gateway Consulting, shares his expert insights on the advantages of the emergence of the Special Economic Zone (SEZ) Sanur. Here’s a quick summary of what you need to know.

SEZ (Special Economic Zone) is a designated area in Sanur, Bali, Indonesia, set up to boost economic development through various incentives and benefits.

SEZs are generally created to attract foreign investment, foster economic growth, and enhance infrastructure by offering tax breaks, regulatory exemptions, and streamlined business processes. Sanur, a well-known tourist area in Bali, has been selected as a site for an SEZ to leverage its existing tourism appeal while integrating new economic activities.

The goals for SEZ Sanur typically include promoting sustainable tourism, encouraging new business ventures, and improving local infrastructure and employment opportunities. The specific details, such as the types of businesses encouraged, and the exact benefits offered,can vary and are usually outlined by regional and national government regulations.

What are the advantages of the newly formed SEZ?

The SEZ in Sanur offers PT PMA foreign investment owners significant advantages, including financial incentives, regulatory ease, a robust and reliable infrastructure, investment opportunities, skilled labour, and potential for market expansion. Indonesia established the SEZ to stimulate economic growth, diversify the local economy, and attract foreign investment.

For PT PMA (Penanaman Modal Asing) foreign investment owners, the SEZ offers several key advantages:

1. Tax Incentives – PT PMA investors benefit from various tax breaks, such as lower corporate income tax rates, VAT exemptions, and other fiscal incentives. These financial benefits can significantly enhance profitability and reduce operational costs.

2. Regulatory Simplicity – The SEZ provides a streamlined regulatory environment, including simplified business licensing and reduced bureaucratic processes. This facilitates faster setup and operation, making it easier for foreign investors to establish and run their businesses.

3. Infrastructure Development – The SEZ includes upgrades to infrastructure such as modern facilities, improved transportation networks, and reliable utilities. This advanced infrastructure supports efficient business operations and reduces logistical challenges.

4. Investment Opportunities – The SEZ is designed to attract international investment, creating a dynamic investment climate. PT PMA owners can benefit from increased access to funding, potential partnerships, and growth opportunities within a vibrant business environment.

5. Skilled Workforce -The focus on developing various industries within the SEZ helps cultivate a skilled and specialised workforce. PT PMA companies have access to qualified professionals who can support their operations and growth.

6. Market Access and Growth – The SEZ promotes diverse industries, allowing foreign investors to tap into new markets and expand their businesses. This can lead to increased market share and business growth in the region.