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Indonesia looks to form special economic zone in South China Sea

Jakarta to reinforce security before luring foreign investment to Natuna Islands

Indonesian President Joko Widodo visits a military base in the Natuna Islands in January 2020.   © Antara Foto/Reuters

JAKARTA -- Indonesia may turn its Natuna Islands in the South China Sea into a special economic zone (SEZ) to reinforce maritime security and entice investment in the local fishing and tourism industries, according to sources who spoke to Nikkei Asia.

The move may provoke protests from China but is aimed at preventing Beijing from increasing activity near the islands.

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