Surabaya. B-Universe Media Holdings Executive Chairman Enggartiasto Lukita said on Friday that Gresik has set an example for effective collaboration between local government and businesses in establishing a mutually beneficial special economic zone, known locally as KEK.

The East Java town has attracted major domestic and international investors, most notably Freeport Indonesia, which recently built a multi-billion dollar copper and gold smelter in Gresik.

Even during its construction, Freeport’s smelter created 40,000 new jobs, with East Java residents accounting for 60 percent of the positions. Freeport has invested $3.1 billion in the new smelter, which has an installed capacity of 1.6 million tons of copper cathode per year.

“This is a very good example for other regions that also have KEKs or plan to establish one in the future,” Enggartiasto said after hosting the Investor Daily Roundtable business talk show in Surabaya.

In addition to new job openings, the smelter in Gresik bolsters the provincial and national economy by creating new business opportunities such as catering services, transportation, and hospitality.

“It has multiplier effects on small and medium enterprises as well as other businesses,” Enggartiasto said.