Development of SEZ Realises South Kalimantan as Kalimantan's Logistics Gateway
The provincial government of South Kalimantan is committed to realising the province as the regional logistics gateway for Kalimantan and the Nusantara capital city through the development of Special Economic Zones (SEZs).
This was one of the main topics discussed at the 2026 Development Planning Deliberation (Musrenbang) for preparing the 2027 Regional Government Work Plan (RKPD), held at the K.H. Idham Chalid Auditorium Building in Banjarbaru on Tuesday (7/4).
South Kalimantan Governor Muhidin emphasised that strengthening SEZs is one of the strategic directions in the province’s development, in line with government efforts to encourage investment, accelerate industrial downstreaming, and create jobs.
Muhidin outlined plans for developing a new SEZ and the International Port of Mekar Putih, projected to become one of Indonesia’s deepest ports. According to him, this project is expected to attract major investments and strengthen South Kalimantan’s position as a regional logistics gateway.
“The plan for the International Port of Mekar Putih, which also includes several industries, exemplifies the Special Economic Zone we are currently promoting. One of the structures we are building is a bridge to the port planned for the future. The investment value is estimated at nearly Rp40 trillion for the Special Economic Zone, while for the bridge it is around Rp6 trillion,” he explained.
One of the SEZs considered quite successful is the Setangga SEZ in South Kalimantan, which has shown positive development. The Setangga SEZ, designated through Government Regulation Number 26 of 2024, is being developed as an industrial and manufacturing zone focusing on downstreaming palm oil, nickel, and the development of lithium battery component factories. This position makes the Setangga SEZ strategic, not only for regional industrialisation but also in supporting the national agenda to increase the added value of natural resources.
By Q4 2025, the investment realisation in Setangga SEZ reached Rp3.676 trillion, bringing the cumulative total investment to Rp5.310 trillion. In the same period, cumulative employment absorption has reached 1,600 people. These achievements indicate that Setangga SEZ has moved from the planning stage to a zone beginning to generate tangible economic impacts for South Kalimantan.
For South Kalimantan, strengthening SEZs is considered highly relevant because the region has great potential to grow as a logistics centre, processing industry, and new investment node in the area. SEZ development is expected to provide direct benefits to the region, from increasing the added value of flagship commodities, opening up jobs, growing supporting businesses, to strengthening supply chain connectivity.
At the forum, Deputy Minister of Home Affairs Akhmad Wiyagus emphasised that 2027 development priorities must focus on increasing productivity, strengthening an efficient investment climate, and bolstering downstreaming-based industrial sectors. This policy direction serves as an important foundation for regions to strengthen strategic sectors capable of creating added value and accelerating economic growth.
Acting Secretary General of the National SEZ Council, Rizal Edwin Manansang, affirmed that Setangga SEZ’s achievements are noteworthy as they demonstrate strong performance despite being a new SEZ. “Setangga SEZ has also shown something quite extraordinary. Although counted as one of the new SEZs, Setangga SEZ has become one of the top 10 contributors to SEZ investments,” he stated.
The central government has affirmed its support for the South Kalimantan Provincial Government’s plan to establish a new SEZ in Kotabaru Regency, provided all stipulated requirements are met and fulfilled.
This support is also bolstered by the solid national performance of SEZs. By Q4 2025, cumulative investment in 25 SEZs reached Rp336 trillion with employment absorption of 249,072 people. Throughout 2025, investment realisation reached Rp82.6 trillion, while employment achievement reached 88,541 people, exceeding the initial target of 46,864 people. This data reinforces confidence that SEZs are an effective instrument for attracting investment and driving regional economic growth.