Special Economic Zones (SEZ): Premium Investment Locations with Enhanced Incentives
Indonesia's 15 Special Economic Zones (KEK - Kawasan Ekonomi Khusus) offer world-class infrastructure, 10-25 year tax holidays, import duty exemptions, and streamlined licensing. Strategically located across the archipelago, SEZs provide foreign investors with unparalleled competitive advantages.
15
Active SEZs25
Years Tax Holiday0%
Import Duties1-Stop
Licensing ServiceWhat are Special Economic Zones?
Designated areas with preferential economic policies
SEZs (KEK) are geographically defined regions established by government decree (Law No. 39/2009) offering superior infrastructure, fiscal incentives, and streamlined regulations to attract foreign direct investment in priority sectors.
Core Features:
- Enhanced Incentives: Beyond national tax incentives
- Customs Free Zone: Import/export facilitation
- Modern Infrastructure: Power, water, transport, telecom
- One-Stop Service: Integrated licensing office (OSS)
- Strategic Location: Ports, airports, trade routes
Why Invest in SEZs?
Competitive advantages unique to SEZ locations
Fiscal Benefits:
- • 10-25 year income tax holiday
- • 0% import duty on capital goods
- • VAT/sales tax exemptions
- • Land & building tax reductions
Operational Efficiency:
- • Faster licensing (7-14 days)
- • Ready-to-use infrastructure
- • Bonded zone benefits
- • Flexible labor regulations
Strategic Access:
- • Proximity to raw materials
- • Export-import connectivity
- • Regional market access (ASEAN)
Comprehensive Tax Incentives in SEZs
Fiscal benefits exceed standard national incentives
Income Tax Holiday
100% corporate income tax exemption based on investment value and sector priority
Import Duty Free
Capital goods, machinery, raw materials, and components entering SEZ
VAT Exemption
Goods and services transactions within SEZ exempt from value added tax
Property Tax Cuts
Land and building tax reductions for SEZ investors
ROI Boost Example
A $50M manufacturing investment in SEZ can save $30-40M over 20 years vs non-SEZ location through tax holidays, import duty savings, and operational cost reductions.
Indonesia SEZ Map: Strategic Locations
Explore Special Economic Zones across Indonesia's archipelago
Top Performing SEZs by Investment
Highest investment realization showcasing investor confidence
Gresik SEZ
#1 InvestmentEast Java • Gresik Regency
Gresik Special Economic Zone
IDR 92,800.00 trillion
RealizedDesignated
StatusMain Industries:
Strategic Advantages:
- Indonesia SEZ with highest cumulative investment
- International seaport facilities at Tanjung Perak
- Abundant local energy resources
- Established industrial infrastructure and ecosystem
The Gresik Special Economic Zone has established itself as Indonesia highest-performing SEZ measured by investment realization, accumulating IDR 92.8 trillion in cumulative investments by December 2024, surpassing all other special economic zones nationwide and demonstrating exce...
Get Investment Advisory & Legal OpinionKendal Industrial SEZ
#2 InvestmentCentral Java • Kendal Regency
Kendal Industrial Special Economic Zone
IDR 86,570.00 trillion
Realized2,894 hectares
AreaOperational
StatusMain Industries:
Strategic Advantages:
- Proximity to Ahmad Yani International Airport and Tanjung Emas International Port
- Direct access to Trans-Java Toll Road
- Abundant skilled workforce
- Central Java strategic location
The Kendal Industrial Special Economic Zone exemplifies Indonesia strategic manufacturing sector development approach, establishing a comprehensive industrial complex spanning 2,894 hectares in Central Java province, the industrial heartland of Indonesia outside Greater Jakarta. ...
Get Investment Advisory & Legal OpinionIndonesia's 15 Strategic SEZ Locations
Diverse sectors and geographic advantages
Gresik Special Economic Zone
Gresik Regency
DesignatedInvestment: IDR 92,800.00 trillion
Main Industries:
Metal Industry, Electronics, Petrochemical, Chemical Industry, Energy, Logistics
Key Advantage:
Indonesia SEZ with highest cumulative investment; International seaport facilities at Tanjung Perak; Abundant local energy resources; Established industrial infrastructure and ecosystem
Kendal Industrial Special Economic Zone
Kendal Regency
OperationalArea: 2,894 hectares
Investment: IDR 86,570.00 trillion
Workforce: 20,000 workers
Main Industries:
Textile and Garment Industry, Furniture and Toys, Food and Beverage, Automotive, Electronics, Logistics, Industry 4.0
Key Advantage:
Proximity to Ahmad Yani International Airport and Tanjung Emas International Port; Direct access to Trans-Java Toll Road; Abundant skilled workforce; Central Java strategic location
Batang Industropolis Special Economic Zone
Batang Regency
DesignatedArea: 2,887 hectares
Investment: IDR 17,950.00 trillion
Workforce: 7,008 workers
Main Industries:
Integrated Industry, Logistics
Key Advantage:
Indonesia largest state-owned enterprise managed SEZ; Direct Trans-Java Toll Road access at KM 371; Proximity to Semarang port and airport; Railway connectivity with dry port facilities
Arun Lhokseumawe Special Economic Zone
North Aceh Regency & Lhokseumawe City
OperationalArea: 2,662 hectares
Investment: TBD
Main Industries:
Energy Industry, Petrochemical & Chemical Industry, Palm Oil Processing, Wood Processing, Logistics
Key Advantage:
Strategic location in northern Sumatra with access to Malacca Strait; Abundant natural resources including natural gas; Well-developed port infrastructure; Energy sector focus
Sei Mangkei Special Economic Zone
Simalungun Regency
OperationalArea: 2,002 hectares
Investment: TBD
Main Industries:
Palm Oil Processing, Rubber Processing, Tourism, Logistics
Key Advantage:
Indonesia first designated SEZ; Direct access to Kuala Tanjung International Port; Strategic location in major plantation area; Connectivity to Trans-Sumatra Highway
Tanjung Kelayang Special Economic Zone
Belitung Regency
OperationalArea: 324 hectares
Investment: TBD
Workforce: 5,000 workers
Main Industries:
Marine Tourism, Integrated Resort, National Priority Destination
Key Advantage:
Iconic granite rock formations; Featured in international film Laskar Pelangi; Part of 10 National Priority Tourism Destinations; Pristine beaches with crystal-clear waters
Note: 9 additional SEZs include Morotai (tourism), Bitung (fisheries), Kendal (industry), Tanjung Api-Api (agro), Arun Lhokseumawe (energy), Sorong (fisheries), Galang Batang (shipyard), Nongsa (digital), and Likupang (tourism). Each offers unique sector focus and geographic advantages.
How to Invest in Special Economic Zones
Step-by-step process to establish in SEZ
Select SEZ
Choose SEZ matching your sector and logistics needs
Contact SEZ Administrator
Submit investment proposal to SEZ National Council
Our team has successfully facilitated SEZ investments for 50+ foreign clients
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SEZ vs Non-SEZ Investment Comparison
| Aspect | SEZ Investment | Non-SEZ Investment |
|---|---|---|
| Tax Holiday | 10-25 years | 5-20 years (if qualified) |
| Import Duties | 0% (exempt) | 0-10% (depends on item) |
| VAT | Exempt | 11% standard |
| Licensing Time | 7-14 days | 2-4 weeks |
| Infrastructure | Ready, subsidized | Build/arrange yourself |
| Customs Process | Bonded zone - simplified | Standard customs procedures |
Explore Related Regulations
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