The purpose of this study was to identify problems in the economic area and to
analyze the impact of the establishment of Special Economic Zones (SEZ) on the growth of
investment, trade and labor. This study used a qualitative descriptive analysis of the legal
and institutional aspects, infrastructure and planning, as well as incentives and financing.
This study also used the Incremental Capital Output Ratio analysis (ICOR), Output Ratio
Incremental Labour (ILOR) and the Location Quotient (LQ) to 12 (twelve) areas that suggest
themselves into KEK: Sumatera Utara, Riau, South Sumatera, Banten, West Java, Central
Java, East Java, West Kalimantan, Central Kalimantan, East Kalimantan, South Sulawesi
and Central Sulawesi. The results showed that the common problems faced by the economic
area is the provision of incentives that are not in accordance with the conditions of the
region, and the lack of consistency between the rules that become the foundation and
establishment of economic zones and the supporting regulations. From this study it is known
that West Java and Banten region has the potential economic impact that relatively better
than other regions.
Buletin Ilmiah Perdagangan, Vol. 4 No.1, Juli 2010