Government Accelerates Gresik Special Economic Zone Expansion to Boost Economy

Amid global uncertainty stemming from geopolitical conditions and conflicts in various regions, investment realisation in Indonesia continues to increase, including foreign direct investment in Special Economic Zones (KEK). One clear indicator is the rise in investment and expansion plans in several KEKs, demonstrating sustained high investor confidence in Indonesia. Several KEKs, particularly those in the manufacturing industry sector, have submitted plans to expand their zone areas, including 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 in a Coordination Meeting on Spatial Utilisation Activity Conformity Approval 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 Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, in his capacity as Secretary of the National KEK Council, and attended by leaders from the Ministry of Investment and Downstreaming/BKPM, the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency, the Secretariat General of the National KEK Council, the East Java Provincial Government, the KEK Gresik Administrator, and PT Berkah Kawasan Manyar Sejahtera as the KEK Gresik development and management business entity. Since its designation through Government Regulation Number 71 of 2021, KEK Gresik has rapidly developed into a new economic growth centre in East Java. Up to the first quarter of 2026, the zone recorded cumulative investment of Rp113.4 trillion, with post-designation investment reaching Rp108.2 trillion, a surge of more than 1,900 per cent compared to before designation. In terms of employment, KEK Gresik has absorbed 45,860 workers, with over 44,000 jobs created after KEK status was granted. Given the performance and positive impact generated, 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 zone’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 as well as several alternative mechanisms for fulfilling the approval 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 zone expansion process. In his directive, Secretary Susiwijono affirmed that the government fully supports the KEK Gresik expansion plan in line with high investment interest and growing zone development needs. “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. 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 zone managers. This step is taken to ensure all aspects of planning, spatial layout, and licensing proceed in harmony so that the KEK Gresik expansion process can be realised optimally and deliver broader economic benefits to the community.