Formation of Six New SEZs Awaits Presidential Approval

The Coordinating Ministry for Economic Affairs has stated that the establishment of six new Special Economic Zones (SEZs) is still awaiting the stipulation of a government regulation. Coordinating Ministry for Economic Affairs Secretary Susiwijono Moegiarso could not confirm when the government regulation would be signed. He explained that each SEZ must be established through a specific government regulation, making the completion of this regulation the final stage before the six zones can officially operate. “Because one SEK requires one government regulation. So we will have another meeting this afternoon,” Susiwijono told reporters at his office in Jakarta on Monday, 6 July 2026. Susiwijono claimed that proposals for new SEZs continue to arrive from investors in various industrial sectors. Most recently, he said, there has been a request to establish an SEZ from a large business entity, though he could not yet name the party that submitted the proposal. This condition, according to him, indicates that investment interest, particularly foreign direct investment in the manufacturing sector, remains quite high. The plan to add six SEZs was actually first announced by the government in September last year. One of the proposed zones is Indonesia’s first halal SEZ, located in Sidoarjo, East Java. The government assesses that the zone has the potential to become part of the global halal industry supply chain, especially for developing halal raw material-based industries that are currently dominated by other countries. Susiwijono cited the gelatin industry as one of the sectors targeted for development. He noted that most of the world’s gelatin is currently produced in China using raw materials from pork bones and skin, while the main market is in the Middle East. Through the halal SEZ, the government aims to develop halal gelatin production so that Indonesia can capture added value from the supply chain. According to Susiwijono, a number of investors have also expressed interest in investing in the area. Currently, there are 25 SEZs spread across Indonesia, consisting of 13 industrial SEZs and 12 service SEZs. As of the first quarter of 2026, investment realisation in all SEZs reached Rp 353.3 trillion, with employment absorption of approximately 266,000 people.