Jakarta. State-Owned Enterprises (SOEs) Minister Erick Thohir has proposed the establishment of several new Special Economic Zones (SEZs) to accelerate industrial development and expand job opportunities across Indonesia.

Erick said the proposal has been submitted to the National Development Planning Ministry (Bappenas) and will also be discussed further with Coordinating Economic Affairs Minister Airlangga Hartarto.

“There are five new SEZs proposals. Bappenas Minister Rahmat Pambudi has received them, and we will also inform them to the Coordinating Minister,” Erick told reporters at the Parliament Complex in Jakarta on Tuesday.

Among the new SEZs plans, Erick said one in South Sulawesi will focus on shipbuilding, citing strong domestic and global demand for medium-sized vessels. Another SEZs would prioritize the railway industry, a sector he said is gaining momentum as demand for electric commuter train (KRL) carriages rises.

State-owned train manufacturer Industri Kereta Api (INKA) has already secured international contracts, including coal freight wagons for Australia and passenger carriages for Bangladesh.

Separately, Coordinating Economic Affairs Ministry Secretary Susiwijono Moegiarso recently revealed that six SEZs are currently awaiting presidential approval through a government regulation, which would bring Indonesia’s total to 31.

Indonesia currently operates 25 SEZs spread from Aceh to Papua, seven in Java and 18 outside the island. However, the country still lags behind neighbors such as Malaysia, Vietnam, and Thailand in terms of investment inflows and developed land area within its SEZs.

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