Vinnilya Huanggrio, Jakarta – The Indonesian government plans to launch six new Special Economic Zones (SEZs) in the near future, including the country's first halal industrial park in Sidoarjo, East Java, with a projected investment of Rp 40 trillion ($2.4 billion).
Business leaders, however, warn that without improvements in infrastructure, land certainty, energy supply, streamlined licensing, fiscal incentives, and local workforce readiness, new SEZs may suffer the same slow progress as many existing ones.
Officials say the six zones are expected to attract a combined Rp 1,089 trillion ($66.3 billion) in investment.
They include:
- Halal SEZ Sidoarjo, East Java
- Batuta Chemical Industrial Park (BCIP), East Kutai, East Kalimantan (Rp 723 trillion)
- Patimban SEZ, Subang, West Java (Rp 83.5 trillion)
- Subang SEZ, West Java (Rp 157.6 trillion)
- Mangkupadi SEZ, Bulungan, North Kalimantan (Rp 79.5 trillion)
- Batang Integrated Industrial Park SEZ, Central Java (Rp 5.8 trillion)
The halal SEZ will be the first of its kind in Indonesia and is expected to strengthen the country's role in the global halal supply chain. "The potential is enormous for Indonesia to become part of the global halal industry," said Susiwijono Moegiarso, head of the SEZ National Council Implementation Team.
Business Chamber raises concerns
Despite government optimism, the Indonesian Chamber of Commerce and Industry (Kadin) cautioned against moving too quickly. Sarman Simanjorang, Kadin's Vice Chair for Regional Autonomy Development, noted that SEZs have yet to deliver significant contributions to the national economy.
According to government data, total realized investment in SEZs stands at Rp 294 trillion, far below the Rp 1,000 trillion target. "Of the 25 existing SEZs, not all are productive. Challenges remain, such as inadequate infrastructure and energy supply, complex licensing, and uncompetitive incentives," Sarman said on Sunday.
The addition of six new zones would bring the total to 31. Sarman urged the government to first conduct a comprehensive evaluation of existing SEZs to ensure the policy delivers real impact. "Our hope is that the presence of 31 SEZs will truly support regional economies, promote equitable development, and create jobs," he stressed.
President Prabowo Subianto's administration sees SEZs as key to attracting high-quality investment, boosting value-added sectors such as digital services, and expanding national supply chains. The government has set an ambitious target of achieving 8 percent economic growth by the end of Prabowo's term.
Currently, Indonesia's 25 SEZs span industries including manufacturing, digital, tourism, healthcare, and services such as maintenance, repair, and overhaul (MRO). Together, they employ more than 187,000 workers across 442 companies.