Government Hopes Special Economic Zones Will Accelerate Indonesia's Industrialisation
JAKARTA, DDTCNews - The government hopes that the establishment of special economic zones (SEZs) will accelerate industrialisation in Indonesia.
Finance Minister Sri Mulyani Indrawati said industrialisation has the potential to develop alongside the establishment of 25 SEZ sites across Indonesia. Moreover, the government is also providing various tax incentives for investors in SEZs.
"SEZs receive facilitation and exemptions in both fiscal (taxation) and non-fiscal areas," she said via Instagram, as quoted on Thursday (24/7/2025).
Sri Mulyani said President Prabowo Subianto had gathered his ministers to discuss the progress and development of SEZs. Across the 25 established SEZs, capital investment has already reached Rp263.4 trillion and absorbed 160,874 workers.
The SEZs are expected to advance manufacturing and services industrialisation, thereby driving economic transformation. Progress in SEZ industrialisation can also promote regional economic equality.
Beyond mining and mineral downstreaming, companies operating in SEZs also encompass the chemical industry, machinery, logistics, healthcare, digital and data centres, as well as tourism.
Nevertheless, industrialisation in SEZs still faces a number of challenges, particularly in terms of infrastructure such as roads, sustainable electricity, ports and airports. Additionally, there are issues with environmental permits and land acquisition, as well as service-related matters including the ease of customs services.
Prabowo hopes SEZs will continue to be expanded, as compared to other ASEAN countries, Indonesia's SEZs remain limited and small in scale.
"However, President Prabowo has instructed that SEZs be managed well and provide maximum benefits for the public whilst supporting the sovereignty and unity of Indonesia's economy," said Sri Mulyani.
The government has established SEZs spread across various regions of Indonesia. These SEZs operate in diverse sectors and can be tailored to investor needs.
Tax incentives provided in SEZs include tax holidays and tax allowances, uncollected VAT/luxury goods sales tax, import duty exemptions and uncollected taxes on imports, as well as excise exemptions.
Finance Minister Sri Mulyani Indrawati said industrialisation has the potential to develop alongside the establishment of 25 SEZ sites across Indonesia. Moreover, the government is also providing various tax incentives for investors in SEZs.
"SEZs receive facilitation and exemptions in both fiscal (taxation) and non-fiscal areas," she said via Instagram, as quoted on Thursday (24/7/2025).
Sri Mulyani said President Prabowo Subianto had gathered his ministers to discuss the progress and development of SEZs. Across the 25 established SEZs, capital investment has already reached Rp263.4 trillion and absorbed 160,874 workers.
The SEZs are expected to advance manufacturing and services industrialisation, thereby driving economic transformation. Progress in SEZ industrialisation can also promote regional economic equality.
Beyond mining and mineral downstreaming, companies operating in SEZs also encompass the chemical industry, machinery, logistics, healthcare, digital and data centres, as well as tourism.
Nevertheless, industrialisation in SEZs still faces a number of challenges, particularly in terms of infrastructure such as roads, sustainable electricity, ports and airports. Additionally, there are issues with environmental permits and land acquisition, as well as service-related matters including the ease of customs services.
Prabowo hopes SEZs will continue to be expanded, as compared to other ASEAN countries, Indonesia's SEZs remain limited and small in scale.
"However, President Prabowo has instructed that SEZs be managed well and provide maximum benefits for the public whilst supporting the sovereignty and unity of Indonesia's economy," said Sri Mulyani.
The government has established SEZs spread across various regions of Indonesia. These SEZs operate in diverse sectors and can be tailored to investor needs.
Tax incentives provided in SEZs include tax holidays and tax allowances, uncollected VAT/luxury goods sales tax, import duty exemptions and uncollected taxes on imports, as well as excise exemptions.