Three Special Economic Zones Apply for Land Expansion

The Coordinating Ministry for Economic Affairs has revealed that three Special Economic Zones (KEK) are proposing to double their land area to accommodate high investment demand. The three zones are KEK Kendal, KEK Gresik, and KEK Galang Batang. Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso stated that the three manufacturing KEKs have submitted proposals to expand their land area up to two times their current size. He noted that the proposals arose because all available land in the three zones is already occupied, yet many investors still wish to enter but are constrained by land availability. The government is currently accelerating the completion of various basic permits, including spatial planning compliance, location permits, environmental impact analyses (Amdal), and other administrative requirements so that the expansion can be realised immediately. “We want to accelerate land provision because investments are queuing to enter the special economic zones,” he said. He cited KEK Kendal as an example, which currently hosts around 140 industries. All land in the area is already in use, while a number of new investors are still waiting to enter. Susiwijono assessed that the high demand for land expansion reflects significant investor interest in the KEKs. “Up to the first quarter of 2026, investment realisation in 25 KEKs across Indonesia reached Rp 353.3 trillion and has absorbed around 266,000 workers,” he said.