Special Economic Zones Attract 77% More Investment Than Other Regions
Special Economic Zones Attract 77% More Investment Than Other Regions
Jakarta. Indonesia’s Special Economic Zones (SEZs) are significantly more effective at attracting investment than regions without such status, with inflows reaching up to 77% higher, according to a recent study.
Rizal Edwin Manansang, secretary general of the National SEZ Council, said research conducted by a team from the University of Indonesia and economic policy advisory group Prospera highlights the strategic role of SEZs in driving regional economic growth.
“As an illustration, if a region without an SEZ attracts about Rp 10 trillion in investment, a region with an SEZ could draw around Rp 17 trillion to Rp 18 trillion,” Edwin told reporters in Jakarta on Thursday.
Beyond boosting investment, SEZs also generate stronger employment outcomes. Regions with SEZs create around 4% more jobs compared with areas without such zones.
Investment projects within SEZs also absorb significantly more workers. A typical project in an SEZ can employ up to 52% more workers than a similar project outside the zones.
“For example, if a project in a non-SEZ area employs around 10,000 workers, a comparable project in an SEZ could involve up to 15,000 workers,” Edwin said.
The study also found that micro, small, and medium-sized enterprises (MSMEs) located near SEZs have strong potential to grow as part of local supply chains, particularly in sectors such as food and beverages, accommodation, logistics, and other support services.
Edwin added that SEZs create a multiplier effect for surrounding economies. Investment and business operations in these zones can stimulate growth in related sectors, including trade, services, transportation, housing, and construction.
“We remain optimistic that SEZs will continue to develop as new economic growth centers that provide direct benefits to communities, create quality jobs, and support more balanced regional development across Indonesia,” Edwin said.
As of 2025, cumulative investment across 25 SEZs nationwide had reached Rp 336 trillion ($19.9 billion), generating employment for about 249,000 workers since the first SEZ was established in 2012.
The 25 zones are spread across Indonesia and cover a range of strategic sectors, including tourism, healthcare, and technology.
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