Global Geopolitical Turbulence Draws Investors to Indonesia, Java SEZs Could Become Weapon to Attract Major Investments
JAKARTA - Global geopolitical dynamics are beginning to shift the industrial landscape and investment flows. Industrial relocation trends are increasing, including from the Middle East region, and Indonesia is entering the radar as a new investment destination.
The Indonesian Industrial Estates Association (HKI) assesses that Special Economic Zones (SEZs) on Java Island still hold a key role in capturing such opportunities. This position is deemed crucial to drive economic growth up to 8 per cent.
HKI General Chairman Akmad Ma’ruf Maulana stated that Java Island still possesses advantages that are hard to rival. Infrastructure is more ready. Proximity to markets is maintained. The industrial ecosystem is also already formed.
These conditions make Java remain the centre for accelerating investment and industrialisation.
“Java Island remains the backbone of the national economy with significant contributions to Gross Domestic Product. In the context of achieving the 8 per cent growth target, we need measured and quick-impact steps. SEZs on Java Island can become a strategic instrument to meet those needs,” said Ma’ruf in a press statement on Thursday (23/4/2026).
Diversification of zones is deemed important to strengthen Indonesia’s competitiveness in the eyes of global investors. This step also provides flexibility for investors in adapting to business needs and supply chains.
Ma’ruf emphasised that development strategies need to maintain balance. Equity continues, but areas that are already ready also need to be maximised.
The development of SEZs on Java Island is no longer focused on conventional industries. Policy direction is shifting towards high value-added industries.
High-tech based sectors are becoming a priority. Specific industries such as the halal industry are also being promoted to strengthen competitiveness.
“With this approach, SEZs will not only become production centres, but also centres of innovation and new economic growth,” he said.
There is also a push to the government to open room for selective SEZ development on Java Island. This step is deemed important without disrupting the inter-regional equity agenda.
“Synergy between the government, industry players, and zone managers is the main key so that SEZs can provide optimal contributions to inclusive and sustainable national economic growth,” he continued.