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Batang Industropolis now officially an SEZ, more to come, govt vows
Coordinating Economic Minister Airlangga Hartarto said developing SEZs had been a key strategy among Southeast Asian nations to attract investment and that Indonesia lagged behind with only 24 SEZs covering a total of 21,000 hectares.
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An areal photo shows the first phase of develoment for the Batang integrated industrial zone (KIT) in Central Java. (Batang Industrial Park/-)
P
resident Prabowo Subianto has officially designated the Batang Integrated Industrial Zone (KIT) a special economic zone (SEZ), now called Batang Industropolis, under Government Regulation No. 12/2025.
Spanning nearly 4,300 hectares, Batang Industropolis offers a range of incentives for companies to set up shop in the area, including tax breaks and streamlined permit processing.
It has been designated an SEZ for three sectors: manufacturing, tourism and logistics.
Addressing reporters at the SEZ itself on Thursday, Coordinating Economic Minister Airlangga Hartarto said SEZs were a key strategy in Southeast Asian nations to draw investment. He pointed out that Vietnam had four SEZs covering a total of 1.6 million ha, Malaysia had six SEZs spanning 2.2 million ha and Thailand operated 10 SEZs over 622,000 ha.
By comparison, Indonesia currently has 24 SEZs covering a total of 21,000 ha.
“We are optimistic that Batang will be one of many SEZs we establish in the coming years. Ideally, each province should have at least one, meaning we may need at least 38 SEZs nationwide,” President Prabowo said at the same event.
Read also: Job creation outpaces layoffs in manufacturing sector, minister says
