The Indonesian government has announced the establishment of six new special economic zones (SEZs) targeting a range of industries, including halal products and electric vehicles (EVs). According to Susiwijono “Susi” Moegiarso, Secretary to the Coordinating Economic Minister, the zones are awaiting the issuance of government regulations before becoming operational. Among them, the Sidoarjo SEZ in East Java is set to specialize in halal products, aiming to integrate Indonesia into global halal supply chains. Another SEZ, located in Subang, West Java, will focus on strengthening Indonesia’s EV ecosystem, with interest from Chinese manufacturers such as BYD. Details on the remaining four SEZs will be disclosed once the relevant regulations are enacted.
As of June 30, Indonesia operates 25 SEZs across industries including manufacturing, digital technology, tourism, wellness, and maintenance, repair, and overhaul (MRO) services. These SEZs span 23,798 hectares nationwide, with seven on Java and 18 outside the island. Collectively, they attracted IDR 40.48 trillion (US$2.46 billion) in realized investment in the first half of 2024, accounting for 48.2 percent of the annual target and representing a 29 percent year-on-year increase. The zones also generated employment for 28,094 people.
Susi emphasized that developing SEZs is aligned with national priorities to advance downstream industries, enhance the value of domestic natural resources, expand exports, and reduce reliance on imports. A prominent example is the Gresik SEZ in East Java, home to PT Freeport Indonesia’s smelter, described as the world’s largest, which will strengthen the national copper industry while supporting gold production of 52 tonnes annually.
Other SEZs highlight Indonesia’s efforts to position itself in global supply chains. The Sei Mangkei SEZ in North Sumatra has become a key hub for downstream palm oil, with exports valued at IDR 2.7 trillion in 2024. The zone is also expected to attract an additional US$20 million in investment from PT Unilever Oleochemical Indonesia for expansion. In Central Java, the Kendal SEZ is contributing to the global EV supply chain through exports of battery anodes to the United States. Its battery plant has an annual capacity of 80,000 tonnes, enough to support production for approximately 1.5 million EVs.
Meanwhile, the Nongsa SEZ in Batam, Riau Islands, is bolstering Indonesia’s digital economy by securing IDR 5.8 trillion in investment from leading global data center operators, including China’s GDS, Hong Kong’s Gaw Capital, Singapore’s Princeton Digital Group, and New Zealand’s BWDigital Infra Indonesia. In addition, the Galang Batang SEZ in Bintan, also in the Riau Islands, currently exports 2 million tonnes of smelter-grade alumina annually and plans to double capacity to 4 million tonnes per year.
Overall, the planned new SEZs reflect Indonesia’s strategy to deepen industrial downstreaming, attract foreign investment, and enhance its participation in global value chains. By combining diverse focuses—ranging from halal products and EVs to palm oil, digital infrastructure, and mineral processing—the government seeks to ensure sustainable growth, job creation, and stronger economic resilience.
September 10, 2025, The Jakarta Post
(https://www.thejakartapost.com/business/2025/09/10/new-economic-zones-to-invite-ev-firms-halal-products-industry.html)