Government Announces Six New SEZs Awaiting Presidential Approval

Indonesia is preparing to significantly expand its network of Special Economic Zones (SEZs) with the addition of six new zones currently awaiting government approval. This announcement was made by Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, during a media briefing at the ministry’s Jakarta headquarters on September 9, 2025.

The proposed zones require final authorization from President Prabowo Subianto before they can be officially established. According to Moegiarso, these six additional SEZs are currently in the pipeline, pending the presidential regulation that will formalize their creation.

Groundbreaking Halal Economic Zone to Launch in Central Java

Among the proposed zones is Indonesia’s inaugural halal-focused Special Economic Zone, planned for development in Sidoarjo, Central Java. This represents a pioneering approach in the country’s economic development strategy, specifically targeting the rapidly growing global halal industry.

Moegiarso emphasized the transformative potential of this halal SEZ, comparing its strategic importance to the successful Sei Mangkei SEZ, which has already integrated into global supply chains. The government envisions this zone as Indonesia’s gateway to becoming a major force in the international halal market.

Strategic Market Positioning and Value Addition

The Indonesian government has identified a significant opportunity to capture market share in industries currently dominated by Chinese manufacturing, particularly those serving Middle Eastern consumers. The halal SEZ strategy focuses on intercepting and adding value to products that traditionally flow directly from China to Middle Eastern markets.

Gelatin production serves as a key example of this strategy. While China currently produces gelatin primarily from pork-based materials, Indonesia sees an opportunity to provide halal-certified alternatives that would better serve Muslim consumers in the Middle East and beyond.

“The goal is to redirect some of the trade flow that currently moves from China directly to Middle Eastern markets,” Moegiarso explained. “By establishing processing capabilities in our halal SEZ, we can add value and provide religiously compliant alternatives.”

Investment Interest Already Emerging

The halal SEZ concept has already attracted investor attention, with several companies expressing interest in establishing operations within the zone. Moegiarso noted that potential investors, particularly those involved in gelatin and related product manufacturing, have already begun positioning themselves for opportunities once the zone becomes operational. These investors are primarily targeting Middle Eastern markets for their final products.

Current SEZ Landscape and Future Growth

Indonesia currently operates 25 Special Economic Zones distributed across the archipelago. The distribution shows seven zones located on Java Island, while the remaining 18 are spread throughout other regions of the country.

The existing SEZs are categorized into two main types: 13 zones focus on industrial development and manufacturing, while 12 zones are dedicated to service-sector activities. This diversified approach has provided Indonesia with experience in managing different types of economic zones, creating a solid foundation for the planned expansion.

The expansion of Indonesia’s SEZ network represents a broader strategy to enhance the country’s position in global supply chains while leveraging its unique advantages, particularly in serving Muslim-majority markets. The halal SEZ initiative specifically demonstrates how Indonesia is looking to differentiate itself in the global marketplace by offering specialized solutions that align with religious and cultural requirements of target markets.

Original Article:

Tempo.co. (2025, September 10). Indonesia to launch 6 new special economic zones, including first halal SEZ. Tempo.co. Retrieved from https://en.tempo.co/read/2047541/indonesia-to-launch-6-new-special-economic-zones-including-first-halal-sez