Gresik KEK: The Most Popular Special Economic Zone for Investors

Special Economic Zones (SEZs) are areas developed by the government for high-value economic activities with international competitiveness.

Areas designated as SEZs offer various facilities to ease the burden on investors and businesses, including fiscal incentives such as certain tax exemptions, and non-fiscal facilities such as streamlined business and immigration permits, among others.

According to a report by the National KEK Council, in 2023 Indonesia had 20 SEZs that successfully attracted a total investment of Rp66 trillion.

The largest investment in 2023 went to the Gresik SEZ, amounting to Rp33.4 trillion or 50.6% of the total realization.

Following Gresik are the Kendal, Sei Mangkei, Lido, Sanur, Galang Batang, Singhasari, Palu, Mandalika, and Kura Kura Bali SEZs, with investment values as shown in the graph.

The following details the industries developed in these 10 SEZs:

1. Gresik SEZ (East Java): Metal, electronics, chemical, and energy industries.
2. Kendal SEZ (Central Java): Textile, fashion, furniture, food and beverage, automotive, and electronics industries.
3. Sei Mangkei SEZ (North Sumatra): Palm oil processing, rubber, tourism, and logistics industries.
4. Lido SEZ (West Java): Tourism and creative industries.
5. Sanur SEZ (Bali): Healthcare and tourism industries.
6. Galang Batang SEZ (Riau Islands): Bauxite processing and logistics industries.
7. Singhasari SEZ (East Java): Tourism and technology industries.
8. Palu SEZ (Central Sulawesi): Base metal and logistics industries.
9. Mandalika SEZ (West Nusa Tenggara): Tourism industry.
10. Kura Kura Bali SEZ (Bali): Tourism and creative industries.

This year, the government is preparing the establishment of 4 new SEZs with a total investment value of Rp161 trillion.

“[The new SEZs] have been approved, but to be officially designated as SEZs, we need a Government Regulation to be signed by the President,” said the Acting Secretary General of the National KEK Council, Rizal Edwin, as reported by Antara on Monday (July 22, 2024).