Key insights and market outlook
The Indonesian government is focusing on developing four priority Special Economic Zones (KEK), targeting Rp 43 trillion (approximately USD 2.8 billion) in investments. The selected zones are Sei Mangkei, Galang Batang, Gresik, and Arun Lhokseumawe, chosen for their strategic roles in global supply chains. This initiative is part of the 2025-2029 National Medium-Term Development Plan (RPJMN), emphasizing integrated economic development and industrial downstreaming.
The Indonesian government is intensifying its efforts to develop Special Economic Zones (KEK) as key drivers of national economic transformation. As of early 2026, all existing KEKs are undergoing development with a primary focus on strengthening industrial downstreaming. Currently, Indonesia operates 25 KEKs across various sectors, including manufacturing, energy, and digital technology.
The National Medium-Term Development Plan (RPJMN) for 2025-2029 has identified four priority KEKs: Sei Mangkei, Galang Batang, Gresik, and Arun Lhokseumawe. These zones were selected due to their critical roles in global supply chains and their potential to attract significant investment. The government aims to create more integrated and comprehensive economic ecosystems within these zones.
The government is targeting Rp 43 trillion in investments across these priority zones. This investment is expected to drive economic growth, create employment opportunities, and enhance Indonesia's position in the global industrial landscape. The development strategy includes improving infrastructure, streamlining regulatory processes, and promoting industrial downstreaming to maximize the economic benefits of these zones.
KEK Investment Target
National Development Plan Update
Economic Zone Prioritization