Indonesian Political, Business & Finance News

Six New Special Economic Zones Await Government Approval

| Source: ANTARA_ID Translated from Indonesian | Economy
Six New Special Economic Zones Await Government Approval
Image: ANTARA_ID

Jakarta (ANTARA) - The establishment of six new Special Economic Zones (KEK) is still awaiting approval via government regulation (PP), according to the Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso. He stated that discussions regarding the approval of the KEK management bodies are ongoing.

“There are six KEKs still awaiting PP approval, because one KEK requires one PP,” Susiwijono told reporters at his office in Jakarta on Monday.

He noted that the government has recorded high interest from businesses, with a queue of applicants seeking to establish new zones. “Today alone, one large group submitted an application. This means that investment in Indonesia remains very attractive,” he said.

This interest is particularly evident in foreign direct investment (FDI), especially in the manufacturing sector. Susiwijono revealed that accumulated investment realisation in KEKs reached Rp353.5 trillion as of the first quarter of 2026, creating employment for 266,000 people.

Furthermore, three industrial-based KEKs have applied for expansion and land development, aiming to roughly double their existing area to accommodate new investment demand. These zones are KEK Gresik, KEK Kendal, and KEK Galang Batang. Susiwijono stated that these expansion plans carry a potential for new investment worth Rp846 trillion in the coming years.

“This indicates that the investment climate in Indonesia remains very conducive and still very attractive for FDI, particularly in the manufacturing industry,” he concluded.

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