1. JAKARTA — Indonesia is gearing up to establish six new Special Economic Zones (SEZs), with one landmark project set to become the nation’s first Halal SEZ in Sidoarjo, East Java. The plan, confirmed by the Coordinating Ministry for Economic Affairs, is awaiting President Prabowo Subianto’s final approval.

The Halal SEZ is designed to capture one of the world’s fastest-growing consumer markets by positioning Indonesia as a global halal hub. Despite being home to the world’s largest Muslim population, much of Indonesia’s halal raw materials—such as gelatin—are still processed overseas before entering international markets. Localizing production would add export value, retain revenue domestically, and strengthen Indonesia’s standing in global supply chains.

Rising Investor Interest

According to early reports, investors are showing strong interest in halal-related sectors, particularly gelatin processing. Analysts believe the Halal SEZ could quickly become a growth driver once operational, serving markets across the Middle East, Southeast Asia, and Africa.

Indonesia’s Expanding SEZ Landscape

The country already hosts 25 SEZs—13 industrial and 12 service-based—which have attracted nearly US$19.4 billion in investment and created over 187,000 jobs. In the first half of 2025 alone, SEZs absorbed US$2.56 billion in investments and generated US$5.19 billion in exports.

Two zones stand out: Gresik SEZ, East Java, with over Rp 100 trillion in investment, anchored by PT Freeport Indonesia’s copper smelter; and Kendal SEZ, Central Java, with Rp 90 trillion invested, now a rising hub for electric vehicle supply chains.

Lessons from Sanur Health SEZ

Earlier this year, Bali’s Sanur Health SEZ opened as a 41-hectare medical hub with Rp 10.2 trillion in investments. Anchored by Bali International Hospital, it has become a benchmark for specialized SEZs focused on advanced services and export-oriented industries. The Halal SEZ is expected to follow a similar model, catering to food, pharmaceuticals, and halal logistics.

Strategic Significance

The six new zones are part of Indonesia’s broader strategy to diversify its economy, reduce reliance on natural resources, and build global competitiveness in halal products, advanced manufacturing, renewable energy, and healthcare.

For stakeholders:

• Investors gain access to a booming halal sector and policy incentives.
• Businesses tap into world-class infrastructure and export opportunities.
• Workers benefit from thousands of new jobs.
• Policymakers strengthen national growth and reduce import dependence.

Outlook

With the global halal economy projected to reach trillions of dollars, the Sidoarjo Halal SEZ could transform Indonesia into a major supplier of certified halal goods and services. Together with the five other planned zones, it marks Indonesia’s most ambitious SEZ expansion yet—aimed at boosting exports, creating jobs, and securing long-term economic resilience.

Original Articles:

Halal Times. (2025, September 11). Indonesia to Launch Six Special Economic Zones Including Its First Halal SEZ. Retrieved from  https://www.halaltimes.com/indonesia-to-launch-six-special-economic-zones-including-its-first-halal-sez/