Indonesia’s Special Economic Zones (SEZs) attracted Rp32 trillion (US$1.8 billion) in investment during the first half of 2026, with foreign direct investment (FDI) amounting around 75% of the total.
This highlighted the government’s strategy by using SEZs as a key platform for attracting overseas capital and advancing higher-value manufacturing.
Government data has shown foreign investment reached Rp24 trillion, while domestic investors contributed Rp8 trillion. The combined investment generated 34,162 new jobs during the January-June period.
Susiwijono Moegiarso, Secretary at the Coordinating Ministry for Economic Affairs and Chairman of the Executive Team of the National SEZ Council, said maintaining a favorable investment climate remains critical to sustaining investor confidence.
“Investor confidence is built not only through incentives, but also through regulatory certainty, swift resolution of business obstacles, and consistent communication between the government and the private sector,” Susiwijono said, on Sunday, August 2, 2026.
Since the SEZ program was launched in 2012, Indonesia has attracted Rp368 trillion (US$20.4 billion) in cumulative investment from 444 companies, creating 283,234 jobs as of the end of July 2026.
The government views SEZs as a cornerstone of its industrial policy, aiming to strengthen Indonesia’s competitiveness by expanding integrated manufacturing ecosystems, increasing downstream processing, and moving further up the global value chain.
Among the flagship developments is the Galang Batang SEZ, currently is building an integrated aluminum industry with annual production capacity of 12 million tons of bauxite, 4 million tons of smelter-grade alumina, and up to 2 million tons of aluminum ingots.
indonesiabusinesspost
