Indonesia to Launch 6 New Special Economic Zones, Including First Halal SEZ

7 hours ago 3

September 9, 2025 | 11:41 pm

Secretary of the Coordinating Ministry for Economic Affairs and Chair of the Supervisory Board of BP Batam, Susiwijono Moegiarso, in the Parliament Building, Senayan, Jakarta, December 2, 2024. TEMPO/Ilona

TEMPO.COJakarta - The Coordinating Ministry for Economic Affairs has announced that the Indonesian government is set to establish six new Special Economic Zones (SEZs). The news was shared by the Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, during a press conference at the ministry's office in Central Jakarta on Tuesday, September 9, 2025.

Susiwijono stated that the creation of these new zones is pending approval from President Prabowo Subianto. "There are still six SEZs awaiting presidential regulation approval, waiting for the President's decision," he said.

He highlighted that one of these is the country's first halal economic zone, located in Sidoarjo, Central Java. According to Susiwijono, the potential of the Halal SEZ in Sidoarjo is immense.

The government plans to leverage it to position Indonesia as a significant player in the global halal industry supply chain. "We will promote the halal SEZ the same as the SEZ in Sei Mangkei, which is part of the global value chain," Susiwijono noted.

He explained that the government aims to capture a share of the market for goods that have been predominantly sourced and processed in China and its surrounding areas, with the downstream market located in the Middle East.

He used gelatin as a prime example, stating, "We want to promote industries that require, for example, raw material supplies such as gelatin."

Susiwijono mentioned that gelatin is commonly produced in China from pig bones and skin. The Indonesian government sees a significant opportunity to play a role in this supply chain.

"We want to take that share, we want to add value to the goods that have undergone initial processing in China, with their market in the Middle East, diverting first to the Halal SEZ. We will add value there," he explained.

Susiwijono added that investors are already prepared to commit. "There are already queued up investors, I forgot their names, it's related to gelatin and some products, with the final products marketed in the Middle East and its surroundings."

Currently, Indonesia has a total of 25 SEZs. Seven of these are on Java Island, with the other 18 located elsewhere. Thirteen of these are industrial SEZs, while the remaining 12 are service-based.

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