To reach that goal, the contribution of the manufacturing sector to the country’s gross domestic product (GDP) must exceed 20 percent, he said.
“One area showing increased investment is the SEZs. In terms of production, the contribution of the manufacturing sector currently stands at 18.67 percent. Indonesia can only be considered an industrial nation if that contribution surpasses 20 percent,” he informed in a statement released in Jakarta on Thursday.
“So, I urge all SEZ operators to push for more investment and raise the sector’s contribution to the GDP,” he added.
Indonesia’s economy grew by 5.12 percent year-on-year (yoy) in the second quarter of 2025, with gross fixed capital formation (PMTB), one of the key growth contributors, rising by 6.99 percent yoy.
Hartarto, who is also chairperson of the National SEZ Council, emphasized that SEZs, industrial zones, and incoming investments play a significant role in sustaining regional economic growth.
For instance, Sulawesi Island has recorded above-average national growth due to the presence of major industrial areas in Morowali and Bantaeng.
During a closed Cabinet meeting on July 22, 2025, President Prabowo Subianto instructed SEZ leaders to accelerate investment realization and job creation within each SEZ.
The President also prioritized the development of digital and medical education SEZs, particularly highlighting the Batam SEZ, which houses the Apollo Hospital, as a game-changer for Indonesia’s healthcare sector.
“Batam SEZ is expected to become a healthcare prototype. This initiative will position us to compete with Singapore and Malaysia’s Penang. It will also open the door to international medical collaborations, especially since it’s integrated with the existing BP Batam hospital,” Hartarto said.
He added that to attract more investors, international-class hospitals, direct international flights to Hang Nadim Airport, and upgraded port facilities -- such as in Tanjung Kelayang SEZ -- are essential.
He also emphasized that SEZs across Indonesia are expected to create more job opportunities and support education for local communities. He cited the government’s super deduction tax of up to 200 percent for companies actively contributing to vocational education.
He then expressed the hope that each SEZ will align with Indonesia’s broader economic goals, including GDP growth and increased investment.
“We hope SEZs can become key drivers of national economic growth. As President Prabowo has directed, our economy should grow by 8 percent within the next three years. There are only two main levers to make that happen: SEZs and digitalization. No other sector can accelerate growth more effectively,” he added.
Related news: Prabowo plans one special economic zone per province
Related news: Indonesia's Prabowo urges continued SEZ development to draw investment
Translator: Bayu, Azis Kurmala
Editor: Primayanti
Copyright © ANTARA 2025
