Foreign Investors Flock to Indonesia, Evidence Clear in Gresik

Investment realisation in Indonesia is reportedly still experiencing growth, including foreign direct investment in Special Economic Zones (KEK). According to an official statement from the Secretary General of the National KEK Council, several KEKs have submitted area expansion plans, one of which is KEK Gresik. The government continues to oversee the KEK Gresik expansion plan to accommodate high investment interest and support the development of an integrated industrial and port ecosystem. This effort was discussed during a Coordination Meeting on Spatial Utilisation Activity Conformity Approval (PKKPR) for the KEK Gresik Expansion Plan, held at the KEK Gresik BUPP Office (JIIPE) in Gresik on Friday (12/06). The meeting was chaired by the Deputy for Economic Affairs Coordination, serving as Secretary of the National KEK Council, Susiwijono Moegiarso, and attended by leaders from the Ministry of Investment and Downstreaming/BKPM, the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), the Secretariat General of the National KEK Council, the East Java Provincial Government, the Administrator of KEK Gresik, and PT Berkah Kawasan Manyar Sejahtera (BKMS) as the KEK Gresik Development and Management Business Entity. The agenda addressed spatial utilisation conformity and the fulfilment of technical requirements as part of the area expansion submission process. Through this discussion, it is hoped that the licensing and approval process for the KEK Gresik expansion can proceed optimally, thereby supporting increased investment, job creation, and national and regional economic growth. Since being established through Government Regulation Number 71 of 2021, KEK Gresik has rapidly developed into a new centre of economic growth in East Java. By the first quarter of 2026, the area recorded cumulative investment of Rp113.4 trillion, with post-designation investment reaching Rp108.2 trillion, a surge of more than 1,900 percent compared to before its designation. In terms of employment, KEK Gresik has absorbed 45,860 workers, with over 44,000 jobs created after KEK status was granted. Given this performance and positive impact, the expansion of KEK Gresik is a strategic step to accommodate high investment interest, strengthen the integrated industrial and port ecosystem, and promote green energy development to enhance the area’s long-term competitiveness. Prasetyo Wiranto, Director of Spatial Utilisation Synchronisation at the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency, presented various aspects of spatial utilisation conformity at the proposed expansion location, along with alternative mechanisms for fulfilling PKKPR that can be considered in accordance with applicable regulations. The results of the discussion will be followed up through cross-ministerial and institutional coordination to obtain the most effective and regulation-compliant mechanism to support the acceleration of the area expansion process. In his directives, Susiwijono stressed that the government fully supports the KEK Gresik expansion plan, given the high investment interest and the increasing need for area development. ‘The government fully supports the expansion of KEK Gresik so that existing investment opportunities and potential can be immediately realised and converted into economic activity and jobs,’ he stated, quoted from the official release. Susiwijono added that this expansion plan further underscores the role of KEKs as a strategic instrument in driving investment, industrialisation, and job creation. The high demand for area development also reflects strong investor confidence to invest and expand business in KEK areas, particularly in KEK Gresik as one of Indonesia’s premier integrated industrial estates. To support the acceleration of the KEK Gresik expansion realisation, the government will continue to strengthen its role as an investment facilitator through policy synchronisation and coordination across ministries, institutions, regional governments, and area managers. This step is taken to ensure that all aspects of planning, spatial layout, and licensing can proceed in harmony so that the KEK Gresik expansion process can be realised optimally and provide broader economic benefits for the community.