Airlangga Hartarto: Indonesia's SEZ Success Inspires Regional Competitor

TheIndonesia.id - Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized on Monday that the newly established Johor-Singapore Special Economic Zone (JS-SEZ) in the Malacca Strait draws inspiration from Indonesia's successful development of its own Special Economic Zones (SEZs).

"We cannot prevent other countries from following our lead. What we can do is compete with them," Hartarto remarked after attending the 2025 IBC Business Competitiveness Outlook event, according to Antara News Agency.

The JS-SEZ, a collaborative initiative between Malaysia and Singapore, was officially launched last week following an agreement signed by Malaysian Prime Minister Anwar Ibrahim and Singaporean Prime Minister Lawrence Wong in Putrajaya, Malaysia. Both leaders expressed optimism that the SEZ will drive regional economic growth, foster innovation, and attract significant investments.

Hartarto pointed out that Indonesia’s SEZs have successfully enabled the production of critical mineral derivatives, a feat he believes is now being replicated by neighboring countries. "We have developed numerous SEZs, and Malaysia, in particular, views this as a key factor in Indonesia’s success in developing critical minerals," he explained.

He also noted that neighboring countries are keen to replicate Indonesia's success in digital innovation, including in areas such as artificial intelligence (AI) and cloud computing.

Indonesia currently boasts 24 designated SEZs, which span across industries like manufacturing, digital economy, healthcare, education, and aircraft maintenance. Since their inception, these zones have attracted investments totaling Rp256.7 trillion (US$15.78 billion) and created jobs for over 156,000 individuals from 2012 to 2024.

In 2024 alone, Indonesia's SEZs secured Rp82.6 trillion (US$5.08 billion) in investments, generating employment for nearly 43,000 people. Hartarto’s remarks highlight the increasing influence of Indonesia’s economic model on its neighbors, showcasing the country's leadership in shaping the future of regional economic growth.