Indonesia's Six New Special Economic Zones Await Presidential Approval

The establishment of six new Special Economic Zones (KEK) in Indonesia is currently awaiting presidential approval, with the finalization of government regulations being the last hurdle. Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, indicated that while the process is ongoing, the exact timeline for the president's signature remains uncertain.

Each new KEK requires its own specific government regulation for official establishment. Moegiarso mentioned that discussions are continuing, with a meeting scheduled to finalize these regulations. He also highlighted that proposals for new KEKs continue to pour in from investors across various industrial sectors, including significant interest from large business entities, signaling robust investment potential, especially in foreign direct investment within the manufacturing sector.

The government initially announced plans for these six additional KEKs in September of the previous year. Among them is a proposed halal KEK in Sidoarjo, East Java, envisioned to become a key part of the global halal industry supply chain. The initiative aims to develop halal-based industries, such as gelatin production, where Indonesia currently relies heavily on imports and other countries dominate the market. The government seeks to capture value-added opportunities by producing halal-certified gelatin, catering to markets like the Middle East.

Currently, Indonesia hosts 25 SEZs, comprising 13 industrial zones and 12 service-oriented zones. As of the first quarter of 2026, these zones have attracted Rp 353.3 trillion in investment and created approximately 266,000 jobs, demonstrating the economic impact of these designated areas.

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Because one KEK must have one government regulation. So this afternoon we will meet again.