6 New Special Economic Zones Await Presidential Decree

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Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, when interviewed by journalists at his office in Central Jakarta, July 6, 2026. Tempo/Nandito Putra

TEMPO.CO, Jakarta - The Coordinating Ministry for Economic Affairs stated that the establishment of six new Special Economic Zones (SEZs) is currently awaiting the issuance of a government regulation (PP). Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso could not confirm when the regulation would be signed.

He explained that every single SEZ must be designated through its government regulation. Therefore, finalizing these regulations represents the ultimate step before the six zones can officially begin operations.

"Because each SEZ requires a dedicated government regulation, we are scheduled to hold another meeting this afternoon," Susiwijono told reporters at his office in Jakarta on Monday, July 6, 2026.

Susiwijono noted that proposals to set up new SEZs continue to pour in from investors across various industrial sectors. He mentioned a recent request submitted by a major business entity seeking to establish a new zone. However, he declined to disclose the identity of the party behind the proposal.

According to him, this momentum underscores that investment interest, particularly foreign direct investment in the manufacturing sector, remains remarkably high.

The government initially disclosed the plan to add the six SEZs in September last year. One of the proposed sites includes Indonesia's first-ever halal SEZ, located in Sidoarjo, East Java.

The government recognizes the area’s potential to integrate into the global halal supply chain, particularly to cultivate halal-based raw material industries that have long been dominated by foreign competitors.

Susiwijono highlighted the gelatin industry as one of the key sectors targeted for development. Currently, most of the world's gelatin is manufactured in China using raw materials derived from pig bones and skin, with its consumer market situated in the Middle East.

By leveraging the halal SEZ, the government aims to pioneer gelatin production using strictly halal raw materials, thereby allowing Indonesia to capture greater value within the global supply chain. According to Susiwijono, a number of investors have already expressed keen interest in backing the project.

Indonesia currently hosts 25 SEZs spread across the archipelago, comprising 13 industrial zones and 12 service-oriented zones. As of the first quarter of 2026, cumulative realized investment across all SEZs reached Rp353.3 trillion, generating employment for approximately 266,000 workers.

Anisa Febiola contributed to this article

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