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KN-JAKARTA, The development of special economic zones or SEZs continues. In the “Fire Horse” year of 2026, the government will establish six new SEZs with potential investment of IDR 300 trillion. At the Indonesia Special Economic Zone Business Forum in Jakarta on December 9, 2025, Deputy Minister of Investment and Downstream Development, Todotua Pasaribu, stated that these new SEZs will specialize in sectors such as industry, digital, and services, such as healthcare and tourism.
If these six new projects are realized, Indonesia will have 31 SEZs this year. So far, the government has established 25 SEZs: 13 industrial SEZs, 8 tourism services SEZs, 3 digital SEZs, and 1 other services SEZ, specifically for aircraft maintenance, repair, and overhaul.
According to the National Special Economic Zone Council (SEZ) statement in September 2025, the investment value reached IDR 294.4 trillion, with an additional IDR 40.48 trillion in the first half of 2025. This new investment came from industrial SEZs, including the Kendal SEZ in Central Java, the Gresik SEZ in East Java, and Galang-Batang and Nongsa in Batam.
Through SEZs, the government aims to attract as much investment as possible. For investors, SEZs are attractive destinations because they offer a convenient way to start a business.
These facilities include customs facilities in the form of exemptions from import duties and taxes on capital goods and raw materials during construction/production; tax facilities in the form of income tax and value-added tax; and immigration facilities, such as limited stay visas and limited stay permits for foreigners. Integrated licensing services are also available.
SEZs are not a new concept in Indonesia. Since the New Order era, the government has developed several special zone concepts, such as free trade zones and free ports, bonded zones, industrial zones, and integrated economic development zones.
The government has established several criteria for areas to be designated as Special Economic Zones (SEZs): they must comply with regional spatial plans and not potentially disrupt protected areas, have clear boundaries, and have at least 50 percent of the proposed land area occupied.
Economists have issued several recommendations regarding the government’s plan to establish special economic zones (SEZs) in the financial sector. Josua Pardede, Chief Economist at Bank Permata, suggested that the development process be carried out in stages, prioritizing the most relevant activities, and preparing a robust institutional design. Establishing a SEZ in the financial sector will be extremely difficult and carry significant risks. The first risk is that these areas will become mere parking lots for funds rather than engines of real economic financing. This is especially true if the government provides incentives to investors without linking them to domestic project financing.
The second risk is that SEZs in the financial sector could become loopholes for tax evasion and crimes such as money laundering. This risk is heightened if oversight is weak, ultimately jeopardizing Indonesia’s reputation. Another risk is legal and institutional conflicts.
Nevertheless, SEZs in the financial sector could serve as gateways for global funds to finance various projects. These SEZs could accommodate funds for infrastructure projects, energy transition, capital markets, corporate financing, and wealth management. This SEZ can help deepen the domestic financial market and expand financial products, including strengthening Indonesia’s position as an economic hub in Southeast Asia.
Another benefit that can be gained from developing a financial sector SEZ is the diversification of economic growth. Josua said that Indonesia has been strong in commodities, domestic consumption, banking, and physical investment, but has not yet optimized its position in high-value-added financial services.
A financial sector SEZ could become a new engine of economic growth as long as there is a guarantee that funds flowing into the region will flow to productive sectors. The Center for Economic Affairs urged the government not to force the development of a financial sector SEZ, as the establishment of the Daya Anagata Nusantara Investment Management Agency (Danantara) is sufficient. In addition to receiving a large budget, this agency receives contributions from dividends from state-owned enterprises.
The government is still preparing a plan for developing a financial sector SEZ. Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs, stated that a discussion meeting will be held this week.
Photo: Kendalindustrialpark.co.id
