Indonesia, as the largest economy in Southeast Asia and one of the emerging market economies of the world, continuously improves its position to be one of the principals for cost-efficient and attractive investment location in the global economy. The Government of Indonesia (GoI) encourages the development of economic zones that aims to control the use of space, increase efforts of environmentally sound economic development, accelerate the growth and improve the competitiveness of investment, and provide certainty in the planning and construction of infrastructures in support of economic development and investment. Indonesia focuses on its programs to localize investments into economic zones spreading across Indonesia’s islands.

In this regard, following up the economic policy package II issued on 29 September 2015 regarding the acceleration and simplification of investment licensing services in Industrial Estate, Indonesia has applied Direct Construction facility, so-called KLIK, in 48 selected industrial estates, as follow:

  1. Kendal Industrial Park
  2. Bukit Semarang Baru Industrial Park (BSB)
  3. Wijaya Kusuma Industrial Park
  4. Java Integrated Industrial and Port Estate (JIIPE)
  5. Bantaeng Industrial Park (KIBA)
  6. Wilmar Integrated Industrial Estate (KITW)
  7. Modern Cikande Industrial Estate (MCIE)
  8. Krakatau Industrial Estate Cilegon (KIEC)
  9. Bekasi Fajar Industrial Estate (BFIE)
  10. Delta Silicon 8 Industrial Park
  11. Karawang International Industrial City (KIIC)
  12. Suryacipta City of Industry (SCI)
  13. GT Tech Park
  14. Medan Industrial Park (KIM)
  15. Artha Industrial Hill
  16. Greenland International Industrial Center (GIIC)
  17. Jababeka Industrial Estate Phase III
  18. Kota Bukit Indah Industrial City
  19. Indotaisei Kota Bukit Indah Industrial City
  20. Jatengland Industrial Park Sayung (JIPS)
  21. Maspion Industrial Estate
  22. Tuban Industrial Estate
  23. Batamindo Industrial Park
  24. Bintang Industrial Park II
  25. Kabil Integrated Industrial Estate
  26. West Point Maritime Industrial Park
  27. Dumai Industrial Park
  28. Kariangau Industrial Estate
  29. Kawasan Berikat Nusantara (KBN)
  30. Jakarta Industrial Estate (JIEP)
  31. Marunda Center International Warehouse and Industrial Estate
  32. Bintan Inti Industrial Estate Lobam
  33. Millenium Industrial Estate
  34. East Jakarta Industrial Park (EJIP)
  35. Bekasi International Industrial Estate
  36. MM 2100 Industrial Town
  37. Kawasan Industri Terpadu Indonesia China (KITIC)
  38. Kujang Cikampek Industrial Estate
  39. Lion Industrial Park
  40. Cibinong Center Industrial Estate
  41. Rancaekek Industrial Estate
  42. Tanjung Emas Export Processing Zone (TEPZ)
  43. Safe N Lock Warehouse and Industrial Complex
  44. Tanjung Buton Industrial Park
  45. Padang Industrial Park
  46. Makassar Industrial Estate (KIMA)
  47. Piyungan Industrial Estate
  48. Karawang New Industry City

The basic concept of Indonesia SEZ is the preparation of areas which have accessibility to the global market (access to the sea port and or airport). The areas are designed to maximize industrial activities, export, import and other related activities which has high economic value. Furthermore, the areas are given certain facilities and incentives in order to increase the competitiveness among the countries nearby. Both the increasing competitiveness and the incentives are expected to be the pull factors to attract investors to the region.

Indonesia Special Economic Zones are directed to fulfill the achievement of The National Priority Development Agenda:

• Instrument to improve people’s productivity and competitiveness in the international market places
• It is strenghtening the framework of a unitary state of Indonesia through alleviating uneven regional development
• The SEZs are expected to improve Indonesia’s value-added and value chain through down-streaming industrialization
• The SEZs development will increase outer island competitiveness as an investment destination, through regional infrastructure development

Development Objectives of Special Economic Zones:

• Increase investment through the provision of areas endowed with geo-economic and geo-strategic advantages
• Optimalization of industry activities, export, import and other economic activities which has high economic value
• Accelerate the regional development through the establishment of new economic growth centers to balance the development among regions
• Embodying a breakthrough in the regional development model for economic growth, namely industry, tourism and trade to create job opportunities

Until July 2020, there are 15 regions that are registered as SEZs, which are:

SEZ Sei Mangkei

SEZ Tanjung Lesung

SEZ Tanjung Api-Api

SEZ Morotai

SEZ Mandalika

SEZ Palu

SEZ Bitung

SEZ Maloy Batuta Trans Kalimantan (MBTK)

SEZ Tanjung Kelayang

SEZ Sorong

SEZ Arun-Lhokseumawe

• SEZ Galang Batang

SEZ Singhasari

SEZ Likupang

• SEZ Kendal

Special Economic Zones

The government has big plans for tourism in Indonesia. But for the tourism sector to be a major contributor to the economy, large investments are needed to accelerate the process. The government has listed 10 priority tourism destinations for development, which are Danau Toba (North Sumatera), Kepulauan Seribu (DKI Jakarta), Borobudur (Central Java), Bromo Tengger Semeru (East Java), Labuan Bajo (East Nusa Tenggara) and Wakatobi (South East Sulawesi), Tanjung Kelayang (Bangka Belitung), Tanjung Lesung (Banten), Mandalika (West Nusa Tenggara) and Morotoi (North Maluku).

Tourism Zones