Government Accelerates Gresik Special Economic Zone Expansion to Boost Economy
Amid global uncertainty caused by geopolitical conditions and conflicts in various regions, investment realisation in Indonesia continues to increase, including foreign direct investment (FDI) in Special Economic Zones (SEZ). A tangible indicator of this is the rise in investment and plans for area expansion in several SEZs, proving that investor confidence in Indonesia remains high.
Several SEZs, particularly those operating in the manufacturing sector, have submitted plans to expand their areas, one of which is the Gresik SEZ. The government is actively overseeing the expansion plans for the Gresik SEZ to accommodate high investment interest and support the development of an integrated industrial and port ecosystem.
These efforts were discussed during a Coordination Meeting for the Discussion of PKKPR (Approval of Spatial Planning Suitability) for the Gresik SEZ Expansion Plan, held at the Gresik SEZ BUPP Office (JIIPE) on Friday (12/06).
The meeting was led by the Deputy Coordinating Minister for Economic Affairs, acting as the Secretary of the National SEZ Council, Susiwijono Moegiarso. Attendees included 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 SEZ Council, the East Java Provincial Government, the Gresik SEZ Administrator, and PT Berkah Kawasan Manyar Sejahtera (BKMS) as the Developer and Manager of the Gresik SEZ.
Since its establishment through Government Regulation Number 71 of 2021, the Gresik SEZ has developed rapidly into a new economic growth centre in East Java. As of the first quarter of 2024, the area recorded a cumulative investment of Rp113.4 trillion, with post-SEZ designation investment reaching Rp108.2 trillion—a surge of over 1,900% compared to the period before its designation. In terms of employment, the Gresik SEZ has absorbed 45,860 workers, with over 44,000 jobs created after the SEZ status was granted.
Given the positive performance and impact, the expansion of the Gresik SEZ is a strategic step to accommodate high investment interest, strengthen the integrated industrial and port ecosystem, and encourage green energy development to enhance the region’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 planning suitability for the proposed expansion areas, along with several alternative mechanisms for fulfilling PKKPR requirements in accordance with applicable regulations.
The results of these discussions will be followed up through cross-ministerial and inter-agency coordination to identify the most effective and regulatory-compliant mechanism to support the accelerated expansion process.
In his remarks, Deputy Coordinating Minister Susiwijono emphasised that the government fully supports the expansion plans for the Gresik SEZ in line with the rising investment interest and increasing demand for regional development.
“The government fully supports the expansion of the Gresik SEZ, so that existing investment opportunities and potential can be realised immediately and converted into economic activity and employment,” he stated.
To support the accelerated realisation of the Gresik SEZ expansion, the government will continue to strengthen its role as an investment facilitator through policy synchronisation and coordination between ministries, agencies, local governments, and zone managers.
This step is being taken to ensure that all aspects of planning, spatial planning, and licensing are aligned, so that the expansion of the Gresik SEZ can be realised optimally and provide broader economic benefits to the community.