Having five period’s of Five Year Development Plan (PELITA), during the previous First Long Terms Development Program (PJP I) period, Eastern Region of Indonesia (KTI) to some extent, it is realized to be less developed as compared to Western Region of Indonesia (KBI), either in terms of availability of infrastructure, development of local economic and productive potentials, or regional economy and human resources development. The existing investment project, both foreign and domestic are mostly concentrated in Western Region, on the other hand, the investment project in the Eastern Region is only about 7. 85 % as the year of 1997 and in terms of values its only accounted for 19 % of the National rate of investments. This is the performance gap in the economic term.

Looking at the disparities in the regional context between Eastern and Western Region also in the framework of the equitable distribution of development project in Indonesia, the government then issued and later improved the Presidential Decree (KEPPRES 150/2000) for the establishment of the Integrated Economic Development Zone (IEDZ) or KAPET to enhance and accelerate the regional economic development particularly in the Eastern Region, which include the consideration of autonomous era.

On the first phase, 13 IEDZ throughout the Eastern Region, except one, Bandar Aceh Darussalam that is located in Western Region, had been established to be developed in an integrated economic system. Each of IEDZ was identified and chosen from the national spatial plan as priority areas for an economic growth centre of each province.

To be implemented on a regional basis and with a focus on attracting private investment, each IEDZ has the potential for rapid growth and prime sectors that can be mobilized to accelerate economic growth in the area and its surroundings. By giving some facilities and incentives, and also the capability of the IEDZ management board, it is expected that IEDZ will be capable to become a prime mover of the region by attracting private investment to develop industries and other business activities in the area.

For attracting private investment and creating the new investments in IEDZ area, the government attempts to create precondition of investment development such as through developing of professional management institution, providing incentives both fiscal and non fiscal, supporting of selected facilities and infrastructures, and others accessibilities, and also distributing every information about investment opportunities which are possessed by each IEDZ, through promoting and marketing the business opportunities particularly in prime sector development.

The investment opportunities offered in IEDZ are mainly based on the utilization of natural resources, such as plantations, agro industries, processing industrial estate, industrial plant forest, mining, fisheries, and other exploration of the natural resources and also trade and services. Besides that it also offers the development of infrastructure, such as toll road and bridges, harbour, airport, electricity, and other infrastructures that will support economic development and business activities in the area and its surroundings.

In order to encourage the benefits of investment, each management board of IEDZ and respectively local government where is the IEDZ laid will provide various assistances and information related to the investment opportunities and activities of the IEDZ to the investors and other stakeholders.

1. To provide as wide as investment opportunities to the business world for developing the prime sectors in the IEDZ by providing incentives and simplifying the procedures for investment.

2. To create an equal distribution of economic development and inter-support relationship of economic development between areas in the national and regional economic system.

3. To provide integrated and selected supporting infrastructure from government to accelerate the economic development and business activities of the region.

4. To develop an independent and professional institution to manage and attract various private investment opportunities in the area, both for domestic and foreign investments.

To provide more detail information of the projects and the procedures of investment, it is available at the Management Board of each IEDZ, it might contact each of the IEDZ Management Board, or contact the Secretariat for Technical Team of IEDZ Development Board in Jakarta that will also give assistances for the investors and other parties to provide and facilitate the information required.