Indonesia and Taiwan setting up Special Economic Zone in North Indonesian Island

Susilo Bambang Yudhoyono, the president of Indonesia has just approved a proposal to establish a special economic zone in one of Indonesia's Northernmost islands and where a joint development project with Taiwan is occurring, in Morotai.

The representative of the Taipei Economic and Trade Office Indonesia, announced that Indonesia and Taiwan will hold a meeting next week to discuss details of the joint development project, where one or two priority sectors will be selected to start off with - possibly agriculture and tourism.

The next stage will involve attracting investment from Indonesian and Taiwanese business people, with the Indonesian government having already delegated different tasks involved in project planning. This includes a taxation incentives study and infrastructure deployment towards various government agencies.

The Indonesian government’s decision to establish a special economic zone in Morotai was made during February. Morotai is a 2,400km² island, situated 2,600km from Taiwan, housing a population of approximately 50,000.

In 2012, Indonesia and Taiwan signed a memorandum of understanding, which covered the joint development of the island, the largest of the islands being in the resourceful Maluku archipelago, of Eastern Indonesia.

Supporting Morotai tourism, Taiwan's International Cooperation and Development Fund commenced a training course on the island earlier this year, developing local manpower for the travel and tourism industry.