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Indonesia's SEZ Investment Reaches $19.6 Billion as Expansion Accelerates

Addin Anugrah Siwi
July 6, 2026 | 11:53 pm
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This undated photo shows the Galang Batang Special Economic Zone in Bintan Regency, Riau Islands. (Photo courtesy of Indonesia SEZ)
This undated photo shows the Galang Batang Special Economic Zone in Bintan Regency, Riau Islands. (Photo courtesy of Indonesia SEZ)

Jakarta. Indonesia's special economic zones (SEZs) have attracted Rp 353.3 trillion (about $19.6 billion) in cumulative investment and created nearly 266,000 jobs since the program was launched, with the government saying strong investor interest continues despite global economic uncertainty.

Susiwijono Moegiarso, secretary of the Coordinating Ministry for Economic Affairs, said on Monday that the figures demonstrate the resilience of Indonesia's SEZ initiative even as investors become more cautious amid volatile global conditions.

“Although global economic uncertainty persists and investor confidence remains a concern in some areas, investment in our special economic zones continues to show positive growth,” Susiwijono said in Jakarta.

He said the government remains committed to assuring investors that SEZs -- particularly those focused on manufacturing -- continue to offer attractive opportunities supported by incentives, infrastructure, and integrated industrial ecosystems.

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The sustained investment momentum is reflected in plans to expand several major industrial SEZs, including Gresik in East Java, Kendal in Central Java, and Galang Batang in the Riau Islands.

According to Susiwijono, the three zones have proposed expanding their industrial areas to roughly double their current size to accommodate additional investment.

He added that nearly all industrial SEZs have submitted expansion proposals, with confirmed investment potential estimated at Rp 846 trillion (about $47 billion) over the next several years.

Indonesia currently operates 25 special economic zones, stretching from Lhokseumawe in Aceh to Sorong in Southwest Papua. Thirteen are dedicated to manufacturing and industrial activities, while the remaining 12 focus on services, including tourism, logistics, healthcare, education, and the digital economy.

The government is also evaluating proposals for six additional SEZs as part of its strategy to strengthen industrial downstreaming, attract export-oriented investment, and generate employment across the archipelago.

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