Special economic zones log Rp82.5 trillion investment in 2025, nearing target

00:00
10s
00:00

0
Quick Summaries
  • Indonesia’s special economic zones recorded Rp335 trillion in realized investment from 2012 to 2025, alongside 248,459 jobs, according to the National KEK Council.
  • In 2025 alone, investment in 25 KEK reached Rp82.5 trillion and exports climbed to Rp43.95 trillion, driven by downstream products such as alumina and processed copper.
  • The government is working to speed up licensing, optimize fiscal incentives and strengthen infrastructure and data reporting through SINSW to improve KEK performance.

The National Council for Special Economic Zones (KEK) has recorded cumulative realized investment of Rp335 trillion, with 248,459 jobs created over the 2012–2025 period.

“Throughout 2025, based on provisional data, realized investment across 25 Special Economic Zones reached Rp82.5 trillion, or 98 percent of the target. In fact, in the fourth quarter of 2025 alone, incoming investment increased by Rp21 trillion. This shows solid and consistent KEK performance,” said Rizal Edwin Manansang, acting secretary-general of the National KEK Council, in a statement in Jakarta on Monday.

KEK contributions to the national economy were also reflected in export performance. In 2025, realized exports from KEK reached Rp43.95 trillion, up Rp21.93 trillion from the previous year.

Those exports came from higher value-added sectors, including smelter grade alumina from KEK Galang Batang, oleochemicals from KEK Sei Mangkei, anodes from KEK Kendal and processed copper products from KEK Gresik. Edwin said the results pointed to stronger downstream industrial development.

To ensure accuracy and consistency in performance data, business operators in KEK report in an integrated manner through the KEK Application System within the Indonesia National Single Window (SINSW). The system is facilitated by the National Single Window Institution (LNSW) in cooperation with Statistics Indonesia (BPS), he said.

The mechanism reflects strong cross-ministerial and interagency collaboration in supporting KEK management and comprehensive performance evaluation.

The government is also watching several strategic issues, including faster licensing in environmental, manpower and health areas; optimizing the implementation of fiscal incentives; support for developing zone infrastructure; and strengthening ease of doing business in line with Government Regulation No. 28/2025 on risk-based business licensing.

On manpower, the Manpower Ministry plays a role in ensuring compliance with labor standards, protections and certainty of workers’ rights.

Meanwhile, the Investment and Downstreaming Ministry/BKPM, the Industry Ministry and the Energy and Mineral Resources (ESDM) Ministry are pushing for investment realization and the development of industrial and downstream sectors that absorb local labor.

Separately, the Immigration Ministry is strengthening support related to the management of foreign workers in KEK in a selective and controlled manner.

The investment gains, job creation and export performance reinforce KEK’s role as a strategic instrument for national economic development, in line with the direction of the National Medium-Term Development Plan (RPJMN).

KEK are expected to contribute to strong, inclusive and sustainable national growth, including supporting Indonesia’s target of 8 percent economic growth.

Through the national working meeting (Rakernas), the secretariat of the National KEK Council said it would continue strengthening its oversight, coordination and policy facilitation functions to ensure KEK development remains aligned with national priorities.

“Policy synergy and cross-sector coordination are key to maintaining KEK competitiveness and ensuring sustainable zone development. Performance evaluation is not only a tool to assess achievements, but also a foundation for formulating acceleration measures that are more targeted and responsive to on-the-ground needs,” Edwin added.

Indonesianpost.com | Antara

Follow The Indonesian Post on WhatsApp
Get the latest news, updates, and articles as soon as they are published.
WhatsApp Icon Join our Channel
Leave A Reply

Your email address will not be published.