Evaluating the Associations between SEZ Management and Development Expectation in Singhasari SEZ

The discussion about the influence of special economic zones on a country's economy remains interesting. Many developing countries use SEZs as a policy tool to promote industrialization and economic transformation. The main objectives of Special Economic Zone (SEZ) development are to encourage economic growth, equitable development, and increased competitiveness. This study aims to examine how economic activities, SEZ management, SEZ rights and privileges, and location influence development expectations in the economic and social fields of the Singhasari Special Economic Zone. This study used 159 respondents from the Singhasari SEZ and its surrounding areas. The data analysis method used is Structural Equation Modeling (SEM) based on Partial Least Squares (PLS). This study failed to confirm the influence of SEZ economic activities and SEZ Location in the Singhasari SEZ on the economic development expectations in Malang Regency. Nevertheless, SEZ management and SEZ right privilege have been shown to influence economic development expectations in Malang Regency. In addition, economic activities, SEZ management, and SEZ rights and privileges in the Singhasari SEZ have been shown to affect the social development expectation in Malang Regency. Lastly, the location has not been shown to affect social development expectations in Malang Regency.