SEZ SUCCESS FACTORS
Made Supriatma, a political analyst and visiting researcher at the ISEAS-Yusof Ishak Institute in Singapore, said Lido SEZ has a shot at success because it is near Jakarta and there is now a new highway connecting it with the capital.
“It could become an integrated entertainment centre for Indonesia’s elites,” said Made.
“Its location, just an hour from Jakarta, its prestige as a ‘Trump property’ and its various entertainment options (golf resort, music concert venue and so on) will satisfy Jakarta’s elites.”
Wawan Mas’udi, dean of the faculty of social and political sciences at Gadjah Mada University in Yogyakarta, said that designating an area as a special economic zone typically means the state provides supporting infrastructure, simplifies licensing, and creates a more favourable business environment.
“The state allocates resources to support it, licensing becomes simpler, and there are other forms of facilitation,” he said.
He said that the institutional set-up matters because SEZs are designed to reduce bureaucratic bottlenecks and support investments.
But he added that while the state may create the enabling environment, the development’s actual business success depends on investors and market conditions.
“It could be things like the business model or (potential) social problems that the developers could prevent beforehand,” Wawan said.
Environmental property expert Syarifah Syaukat from property consultant Knight Frank said Lido has commercial appeal because of its green landscape, large land area and accessibility through a new toll road.
She added that Indonesia could be an attractive market for golf resorts and clubhouses because the segment targets high-income consumers, and Indonesia has a growing wealthy class, but there are several things developers must consider.
“Developers must consider the local culture, prevailing policies, the stability of national economic growth, and applicable spatial planning regulations (for the resort to succeed),” she said.
“They must also consider the benefits of regional development for the surrounding communities, both in terms of environmental sustainability and livelihood sustainability.”
This was perhaps an issue with a Trump-linked golf resort on the Indonesian island of Bali.
Discover more from PressNewsAgency
Subscribe to get the latest posts sent to your email.