Special Economic Zones and Industrial Parks in Indonesia
The Indonesian government has prioritized the development of Special Economic Zones (SEZs), aiming to attract over US$50 billion in foreign investment within the next decade, with a specific focus on manufacturing.
The SEZ program is relatively new, having been announced in 2014 under President Joko Widodo to build on the success of existing free trade zones and boost foreign investment. The first SEZs became operational in 2015, but the majority only began operating in 2019. As of 2022, there are 19 SEZs in total; 12 are currently operating, and the other seven are under construction. Of these 19 zones, eight are dedicated to tourism, while the rest are focused on manufacturing and processing activities.
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