Amid the challenges of a global manufacturing slowdown, Special Economic Zones (SEZs) in Indonesia have demonstrated resilience as a key pillar of national investment. High interest from both domestic and foreign investors has pushed the capacity of several zones close to saturation, making expansion an urgent necessity.
Three strategic locations—namely Gresik SEZ in East Java, Kendal SEZ in Central Java, and Galang Batang SEZ in Riau Islands—have currently submitted land expansion applications. This expansionary step follows the capacity limitations of existing areas to accommodate the continuously growing influx of new investments.
As of 2025, the national performance record of SEZs remains impressive, with cumulative investment realization reaching IDR 335 trillion and creating 248,459 jobs. In the current period, these zones successfully recorded IDR 82.5 trillion in investments, with export value contributions reaching IDR 43.95 trillion.
The government recognizes that this success must be coupled with continuous improvements. A number of strategic agendas have become priorities, ranging from accelerating licensing, optimizing fiscal incentives, improving ease of doing business, to strengthening supporting infrastructure so that SEZ competitiveness remains high on the global stage.
The economic potential of the expansion plans for these three SEZs is quite massive. New investment projections include IDR 410.78 trillion for Gresik SEZ, IDR 370 trillion for Kendal SEZ, and IDR 114.2 trillion for Galang Batang SEZ. If realized, this expansion is predicted to absorb more than 500,000 new workers, delivering broad positive impacts for the national economy.
