Kadin Urges Government to Immediately Approve Expansion of Three Manufacturing SEZs

The Indonesian Chamber of Commerce and Industry (Kadin) is urging the government to promptly respond to proposals for the expansion of three manufacturing-based Special Economic Zones (SEZs), citing high investor interest as a positive signal for the national investment climate. Sarman Simanjorang, Vice Chairman of Kadin Indonesia for Regional Autonomy Development, stated that the three SEZs seeking expansion—KEK Kendal, KEK Galang Batang, and KEK Gresik—reflect Indonesia’s enduring appeal to investors despite a global economy still overshadowed by various challenges. According to Sarman, this high level of investor enthusiasm is a momentum that must be harnessed by creating an increasingly conducive business and investment climate. He believes that accelerating the expansion approval process will strengthen investors’ confidence to promptly realise their investments in Indonesia. “This request for expansion should be responded to and considered by the government quickly and carefully, because it is a positive signal amidst a still-depressed global economic condition; investor appetite for investing in Indonesia evidently remains enthusiastic,” Sarman told Bisnis on Sunday (5/7/2026). He added that the influx of new investment through special economic zones is also believed to support this year’s national investment target of Rp2,175 trillion. Furthermore, the realisation of this investment is considered to have the potential to create new jobs for the community. “We must certainly welcome this momentum positively by creating a conducive business and investment climate. With this high level of interest, it will be able to contribute to this year’s investment target of Rp2,175 trillion as well as the creation of jobs for the nation’s people,” he said. Sarman further opined that the expansion of SEZs not only impacts increased investment but also acts as a driver of economic activity in the regions. The presence of new investors will create a multiplier effect on various supporting business sectors. He explained that industrial activity in special economic zones will increase labour absorption while simultaneously driving growth in household consumption. The impact will also be felt by micro, small, and medium enterprises (MSMEs), such as catering service providers, restaurants, and rental housing and boarding house businesses. “Regional economic productivity will boost regional and national economic growth. Business players hope that this expansion request is responded to quickly and with certainty so that investors do not have to wait long and can immediately invest their capital in Indonesia,” he concluded. For context, KEK Kendal has currently reached a 100% utilisation rate with an area of approximately 1,000 hectares, accommodating 140 industries including electronics, textiles, home furnishings, batteries, anodes, and cathodes. Meanwhile, KEK Galang Batang, which also includes a bauxite-to-alumina smelter industry, is requesting an additional area of 2,700 hectares. Industries reportedly seeking to enter this SEZ include smelter industries and the development of alumina into downstream products up to refinery.