Three Industrial SEZs to Be Expanded, Foreign Investors Queue Up

The government will expand three industrial-based Special Economic Zones (SEZs) after the available land has been almost fully occupied. The expansion is being carried out to accommodate new investments that are still queuing to enter Indonesia.

Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso said the three SEZs applying for expansion are Gresik SEZ, Kendal SEZ, and Galang Batang SEZ. On average, these zones are proposing an expansion of up to twice their current area.

“These three SEZs are currently applying for area expansion. On average, the expansion is double because the existing areas are already full,” Susiwijono said in Jakarta, Monday (6/7/2026).

According to him, high investor interest has prompted the government to accelerate the expansion process, including the completion of basic permits such as spatial planning, location permits, environmental impact analysis (Amdal), and building approvals.

Susiwijono said these steps are necessary so that the queued investments can be realised immediately. The government views this condition as showing that Indonesia remains an attractive destination for direct investment, especially in the manufacturing sector.

He cited the example of the Kendal SEZ, which currently hosts around 140 industries. All land in the area has been utilised, while new investors are still waiting for land availability to invest.

Besides Kendal, positive developments have also occurred at the Galang Batang SEZ in the Riau Islands and the Sei Mangkei SEZ in North Sumatra. At the Sei Mangkei SEZ, global company Unilever will even start a new investment project scheduled to enter the groundbreaking stage in the near future.

To date, investment realisation across all SEZs has reached approximately Rp 353.3 trillion, with employment absorption of around 266,000 people. The government also notes that potential new investment in these zones could reach around Rp 846 trillion in the coming years. According to Susiwijono, the high investment interest in SEZs is a signal that Indonesia’s investment fundamentals remain strong amid global economic uncertainty.

“The fact is, almost all manufacturing industry SEZs are applying for area expansion. This shows that direct investment in the manufacturing sector is still very promising in Indonesia,” he said.