Executive Summary

Key insights and market outlook

Indonesia's Special Economic Zones (SEZs) in Batang and Kendal regencies have achieved remarkable economic growth of 8-9% in Q3 2025, significantly outpacing provincial and national averages ¹

². The Coordinating Minister for Economic Affairs, Airlangga Hartarto, attributed this success to well-designed SEZs supported by infrastructure and business-friendly policies. The growth has been primarily driven by strong household consumption and investment in these regions.

Full Analysis

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Deep Dive Analysis

Indonesia's Special Economic Zones Drive Regional Economic Growth

Success Story: Batang and Kendal Regencies

Indonesia's Strategic Economic Zones have demonstrated exceptional performance, with Batang and Kendal regencies achieving 8-9% economic growth in Q3 2025 ¹

². This remarkable growth, significantly higher than provincial and national averages, has been primarily driven by strong household consumption and investment ¹.

Key Factors Behind the Success

The Coordinating Minister for Economic Affairs, Airlangga Hartarto, highlighted that the success of these SEZs can be attributed to their well-designed infrastructure and business-friendly environment. The presence of the Industriopolis Batang SEZ has been particularly instrumental in accelerating investment, creating jobs, and improving local welfare ¹

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Government Perspective

Airlangga emphasized that SEZs are not merely investment incentive tools but catalysts for regional economic transformation. He noted that when SEZs are properly designed with adequate infrastructure, ease of doing business, and integration with local labor, they can generate sustainable high economic growth ¹

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Economic Impact

The economic performance of these regions demonstrates the potential of SEZs as effective instruments for regional development. The 8.52% growth in Batang regency during Q3 2025 represents a significant improvement from the previous year's performance ¹

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References