Jakarta. Indonesia's Special Economic Zones (SEZs) attracted Rp 32 trillion ($1.8 billion) in investment during the first half of 2026, with foreign investors accounting for three-quarters of the total, according to government data released on Sunday.

Foreign direct investment reached Rp 24 trillion, while domestic investment contributed Rp 8 trillion. The investment created 34,162 new jobs, the government said.

Susiwijono Moegiarso, secretary at the Coordinating Ministry for Economic Affairs and chairman of the executive team of the National SEZ Council, said maintaining a favorable investment climate remains essential to sustaining investor confidence.

"Investor confidence is built not only through incentives, but also through regulatory certainty, swift resolution of business obstacles, and consistent communication between the government and the private sector," Susiwijono said.

Since the SEZ program was launched in 2012, cumulative investment has reached Rp 368 trillion ($20.4 billion) from 444 companies, generating 283,234 jobs as of the end of July 2026.

The government is positioning SEZs as a cornerstone of its strategy to strengthen Indonesia's competitiveness by promoting higher-value industries and more integrated investment.

Among the flagship projects is Galang Batang SEZ, which is developing an integrated aluminum value chain spanning 12 million tons of bauxite production, 4 million tons of smelter-grade alumina, and up to 2 million tons of aluminum ingots annually.

Indonesia is also expanding digital economy-focused SEZs through investments in data centers, artificial intelligence, and international digital connectivity, including the 50-kilometer Nongsa–Changi submarine cable, which has a capacity of 1.6 petabits per second.

Beyond manufacturing and digital infrastructure, SEZs are being developed as growth centers for tourism, education, and workforce development. Initiatives include tourism expansion, a partnership between Singhasari SEZ and King's College London, and vocational training programs supported by Rp 6.26 trillion in government funding.

Among the latest investment commitments, Gresik SEZ has secured a planned $600 million investment from GEABH Joint Technology to build Indonesia's first and largest melamine plant with an annual capacity of 120,000 tons.

Meanwhile, Evyap Sabun Indonesia has invested $130 million in downstream palm oil processing at Sei Mangkei SEZ, while Kendal SEZ has begun construction of a Rp 1.12 trillion paper packaging plant by Hoi Fu, expected to create around 1,000 jobs. Batang Industropolis SEZ has also signed two agreements with Hungarian investors to support the development of green energy projects.