Special Economic Zone Investment Breaks Rp336 Trillion Barrier, Indonesia Set to Inaugurate 6 New Zones
Jakarta — The government will shortly grant Special Economic Zone (SEZ) status to six new zones. To date, cumulative investment across 25 existing SEZs has reached Rp336 trillion with approximately 249,000 jobs created since their establishment in 2012 through 2025.
Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, stated that the government is confident SEZs serve as a major investor draw amid global economic uncertainty. The zones offer business certainty through streamlined licensing, incentive services, and integrated infrastructure support for industrial operators.
“There are currently six SEZs whose regulations are awaiting signature, relatively dispersed across different sectors,” Moegiarso told journalists during the Media Gathering for the National Council of SEZs on Thursday, 12 March 2026.
The government will facilitate high-value-added sectors that absorb significant labour within SEZs. With regulatory certainty and available facilities, SEZ investment is expected to have higher growth potential compared to other regions.
Additionally, various trade agreements including the ASEAN Trade in Goods Agreement (ATIGA), Comprehensive Economic Partnership Agreement (CEPA), and Free Trade Agreements (FTA) are seen as driving export-oriented industries into SEZs. These agreements provide wider global market access, increasing demand for products manufactured within the zones.
Rizal Edwin Manansang, Acting Secretary-General of the National Council of SEZs, reported that investment realisation in these zones continues rising. In 2025 alone, SEZ investment reached Rp82.6 trillion, approximately 98% of target, with an additional 88,541 jobs created.
“SEZs represent strategic government policy to accelerate national economic growth whilst attracting foreign direct investment,” Rizal stated during the gathering on Thursday, 12 March 2026.
Indonesia currently operates 25 SEZs comprising 13 industrial zones, six tourism zones, two healthcare zones, one digital zone, two education and technology zones, and one aircraft maintenance services zone.
According to research by Prospera and LPEM UI, SEZ presence significantly enhances regional investment attractiveness. Zones with SEZ status and facilities can attract 77% higher investment compared to non-SEZ regions. In industrial SEZs, foreign direct investment can reach approximately 179% higher than non-SEZ areas.
Beyond investment attraction, industrial activity within zones generates downstream economic effects including growth in logistics, trade, construction, and supporting services sectors in surrounding areas.
Edy Mahmud, Deputy Head of Balance Sheets and Statistical Analysis at Statistics Indonesia (BPS), stated the government began conducting direct surveys of SEZ company activities from 2025 to assess their impact on the national economy. Data collection encompasses production value, production costs, capital expenditure, and labour absorption.
“The purpose of establishing SEZs is to increase investment to hundreds of trillions of rupiah, accelerate development, absorb labour, and facilitate inter-country commodity trade,” Mahmud noted.
According to fourth quarter 2025 surveys, total new asset or investment additions in SEZs reached Rp15.1 trillion in one quarter. Largest investments were recorded at Sei Mangkei SEZ at Rp4.349 trillion and Kendal SEZ at Rp3.067 trillion.
Market-wise, approximately 58% of SEZ company production revenue derives from exports, while 42% comes from domestic markets, demonstrating that many value-added products from SEZs target global markets.
Additionally, raw material sourcing for zone industries increasingly relies on domestic supply. Approximately 58% of raw materials originate domestically, whilst the remainder are imported.
Kendal SEZ in Central Java, focusing on manufacturing industries including furniture, food and beverages, automotive, textiles, and fashion, demonstrates significant growth. Since obtaining SEZ status in 2019, the zone has attracted cumulative investment commitments of Rp187 trillion.
In 2025, investment realisation reached Rp14.29 trillion from business operators and Rp1.4 trillion from zone management companies, achieving approximately 189% of the target promised through 2024.
The number of operating companies in the zone increased to 139, whilst labour absorption reached approximately 19,000 workers, exceeding the initial target of 11,000. Regional economic impact is evident in district performance metrics. Kendal Regency’s regional GDP growth increased from minus 1.51% in 2020 to 8.84% in 2025, accompanied by unemployment rate reductions and increased per capita income.
“Kendal SEZ is expected to serve as an economic development engine not only for Kendal Regency but also for Central Java and Indonesia.”