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๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia /Economy & Trade

Gresik Special Economic Zone prepares for expansion amid push for new investments

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

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  • The Indonesian government is accelerating the expansion of the Gresik Special Economic Zone (KEK) to accommodate high investment interest.
  • The expansion is discussed amid global economic uncertainty due to ongoing geopolitical conflicts.
  • The Gresik KEK has already attracted significant investment, totaling Rp113.4 trillion by Q1 2026, and created over 45,000 jobs.

Indonesia is fast-tracking the expansion of the Gresik Special Economic Zone (KEK) in East Java to meet a surge in investment interest. This strategic move comes at a time of global economic uncertainty, fueled by persistent geopolitical conflicts in various regions.

A coordination meeting focused on the "Persetujuan Kesesuaian Kegiatan Pemanfaatan Ruang" (PKKPR), or the Agreement on Conformity of Land Use Activities, was held at the Gresik KEK on Friday, June 12, 2026. The meeting involved representatives from various ministries, government agencies, local authorities, and the zone's management.

Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs and Secretary of the National Council for KEK, affirmed the government's full support for the expansion. "The government fully supports the expansion of KEK Gresik, so that existing investment opportunities and potential can be immediately realized and converted into economic activity and job creation," Susiwijono stated.

The strong investor confidence in Indonesia, particularly in the integrated industrial and port area of KEK Gresik, is evident. Since its designation as a KEK in 2021, the zone has seen substantial growth. As of the first quarter of 2026, cumulative investment reached Rp113.4 trillion, with Rp108.2 trillion of that amount flowing in after the zone achieved KEK status. Furthermore, the Gresik KEK has generated employment for over 45,860 workers, with more than 44,000 jobs created post-KEK designation.

The government views the expansion as vital for strengthening the integrated industrial and port ecosystem and supporting the development of green energy. This initiative is expected to enhance the zone's competitiveness and stimulate economic growth at both regional and national levels. Future efforts will focus on synchronizing policies and enhancing cross-ministerial coordination to expedite spatial planning and permitting processes, ensuring the swift realization of the Gresik KEK expansion and its broader economic benefits.

The government fully supports the expansion of KEK Gresik, so that existing investment opportunities and potential can be immediately realized and converted into economic activity and job creation.

โ€” Susiwijono MoegiarsoSecretary of the Coordinating Ministry for Economic Affairs on the government's support for the Gresik Special Economic Zone expansion.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.