to Indonesian
In accordance with Law Number 39 of 2009 concerning the Special Economic Zones, realizing fair and prosperous society based on Pancasila and Constitution of the Republic of Indonesia of 1945, it should be carried out through the management of national economic development based on economic democracy with the principles of solidarity, equitable efficiency, sustainability, environmental, independence, and keep on balancing economic progress and national economic unity.
In the framework to accelerate the development of the national economy, it is developing Special Economic Zones which is done through the preparation of areas which have geo-economic and geo-strategic advantages that is prepared to maximize activities of industrial, exports, imports, and other economic activities that have a high economic value. Development of Special Economic Zones is also intended to accelerate the development of the region and as a breakthrough model for the development of a region for economic growth, such as industry, tourism, and trade so that they can create job opportunities.
Law Number 39 of 2009 concerning Special Economic Zones mandates some implementing regulations, such as in the form of Government Regulation. Government Regulation is needed to be developed such as arrangement on the procedures for determination of KEK, KEK development period extension, and organizing KEK financing institutions. In order to implement them, it should be stipulate Government Regulation concerning Special Economic Zones Management which scope includes arrangement on the procedure for the KEK proposal, determination, development, management, and management performance evaluation.
This Government Regulation governs KEK proposal that comes from Business Entity, regency/municipality government, province government, ministry/non ministerial government agency. Determination of KEK includes a study of the proposed KEK determination, approval or rejection of KEK proposal, and the recommendation for establishment of KEK to the President. As the basis for approval or rejection of the KEK proposal, also regulates the location criteria that can be determined as KEK.
This Government Regulation also governs follow up of determined KEK which includes the development and management of KEK.
KEK Development involves arrangement on the land acquisition for KEK locations and management of KEK physical development, as well as KEK development financing. KEK management includes arrangement on the Administrator and Business Entity management and PTSP organizing at KEK.
In order for the KEK management is in accordance with the intent of its establishment, this Government Regulation also governs the management performance evaluation, implementation of KEK management evaluation, and delivery of KEK evaluation result.
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What is meant by "distribution" is part of logistics activities in production activities.
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Letter a
What is meant by "new area" is an area that has not been determined as a KEK.
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Letter a
What is meant by "local tax and local retribution facility " is the reduction of local tax and local retribution as intended in provision of regulation in the filed of local tax and local retribution.
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What is meant by "access to ports or airports or other places" is a transportation infrastructure that connects KEK location to the port or airports or other places that serve international trade activities.
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Location near with the source of raw materials for processing industry such as a location near with agricultural cultivation area, plantation area, fisheries and marine area, or mining area.
What is meant by "natural boundaries" such as in the form of a river or the sea.
What is meant by "artificial boundaries" such as in the form of fences or wall or other boundary physically visible.
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Letter b
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Letter c
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Letter d
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Letter e
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Letter f
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Letter g
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Letter h
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Letter i
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Letter j
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Letter k
What is meant by "period" is KEK expiry period.
What is meant by "strategic plan" such as consists phasing the development, operation, and management of KEK.
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Letter n
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What is meant by "the regency/municipality government's commitment" is a memorandum of understanding between the regency/municipality government with the regency/municipality local legislative.
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Letter b
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Letter c
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Letter d
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Letter e
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Letter f
What is meant by "period" is KEK expiry period.
What is meant by "strategic plan" such as consists phasing the development, operation, and management of KEK.
Letter g
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Letter h
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Letter i
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Letter j
What is meant by "the regency/municipality government's commitment" is a memorandum of understanding between the regency/municipality government with the regency/municipality local legislative.
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Letter b
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Letter c
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Letter d
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Letter e
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Letter f
What is meant by "period" is KEK expiry period.
What is meant by "strategic plan" such as consists phasing the development, operation, and management of KEK.
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Letter h
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Letter i
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Letter j
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What is meant by "the regency/municipality government's commitment" is a memorandum of understanding between the regency/municipality government with the regency/municipality local legislative.
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Letter b
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Letter c
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Letter d
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Letter e
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Letter f
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Letter g
What is meant by "period" is KEK expiry period.
What is meant by "strategic plan" such as consists phasing the development, operation, and management of KEK.
Letter h
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KEK development agreement may include KEK management agreement in case of KEK development funded by cooperation of the Government, the province government, or regency/municipality government with Business Entity.
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Letter b
What is meant by “period” in this provision shall not excess of 3 (three) years limit after KEK determination.
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Letter d
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Letter e
Industrial relations dispute settlement mechanism shall comply with regulation in the field of industrial relations.
Letter f
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What is meant by "force majeure" is the occurrence of natural disasters, war, armed rebellion, and large scale social unrest.
What is meant by "not caused by negligence" such as happened obstacles in the implementation of land acquisition or development that is beyond the control of Business Entity, government province, regency/municipality government, or ministry/non ministerial government agency.
What is meant by "the experts according to their field" is the appropriate experts to the problems faced.
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Letter f
What is meant by "in certain cases" includes:
a. Business Entity does not meet the service performance standard;
b. Business Entity is declared bankrupt;
c. Business Entity doing activities that deviate from business license and other license are granted;
d. Business Entity applied for discharge as a KEK operator Business Entity; and/or
e. revocation KEK determination by the Government.
Letter g
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Letter h
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Letter i
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Letter j
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Letter d
What is meant by "lawlessness" is a violation that resulted losses to the state, such as smuggling or misuse of incentive to the party has no right.
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SUPPLEMENT TO STATUTE BOOK OF THE REPUBLIC OF INDONESIA NUMBER 5186