Bambang Ismoyo, Jakarta – Indonesia currently has 25 special economic zones (SEZs) across multiple provinces, but their combined land area remains far smaller than Malaysia's, a senior government official said on Tuesday.
According to Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, Indonesia's total SEZ land area amounts to only around 20,900 hectares.
Malaysia, he said, administers 2.1 million hectares of SEZs, meaning the neighbor's capacity is almost 100 times larger.
Even a single zone in Johor Bahru spans more than 350,000 hectares, making that one area alone roughly 18 times larger than all of Indonesia's SEZs combined.
"If we total all our SEZ land, it's only 20,900 hectares. Compare that to Malaysia with 2.1 million hectares," Susiwijono said during a seminar in Tangerang, Banten.
In addition to land size, he noted that utility rates – including electricity, water and gas – in Indonesian SEZs remain less competitive than those offered in Malaysia.
Susiwijono said Batam, long regarded as Indonesia's flagship industrial hub, still lags behind Johor Bahru due to lower operating costs and more developed infrastructure in Malaysia.
Utility costs, he stressed, are a critical factor because they directly influence long-term efficiency and value for investors.
The disparity, he added, should prompt Indonesia to conduct a comprehensive evaluation of SEZ development, covering spatial planning, infrastructure readiness and investment-attraction strategies.
"It's not just about incentives. When you compare electricity, water and gas prices between Johor Bahru and Batam – with respect – Johor Bahru is still far more competitive," he said.