Jakarta ( WNAM MONITORING ): The Indonesian government is preparing to establish six new Special Economic Zones (SEZs), including one in Sidoarjo, East Java, which will serve as a hub for the global halal industry.
Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, said the establishment of the six SEZs is awaiting approval from President Prabowo Subianto.
“Previously there were seven proposed SEZs, but one — the Batang Industrial Special Economic Zone (KITB) — has already been approved. Six more remain, one of which is the Halal SEZ. Hopefully, it will be approved soon,” he stated at a press conference in Jakarta on Tuesday.
Moegiarso explained that the halal SEZ in Sidoarjo has strong potential, as Indonesia is aiming to become a major player in the global halal supply chain. The government hopes to fill gaps in the global market that are currently dominated by other countries.
As an example, he cited the gelatin industry, which is typically produced in China using pork by-products, while the demand is concentrated in the Middle East.
“We want to capture that share, to extract added value from products whose initial processing is done in China, but whose markets are in the Middle East. With the Halal SEZ, we can capture the added value here,” he said.
He added that several investors have shown interest in investing in the halal SEZ, particularly in the gelatin sector and its derivatives.
Currently, Indonesia operates 25 SEZs — 13 focusing on industry and 12 on services.
As of June 2025, total investment in SEZs had reached Rp294.4 trillion (US$19.4 billion), employing around 187,000 people. In the first half of 2025 alone, SEZs absorbed Rp40.48 trillion in investment, equivalent to 48.2 percent of this year’s Rp84.1 trillion target.
