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Indonesia reviews slow-performing special economic zones

Investment in the zones reached Rp46 trillion in January–September 2026, equivalent to 67% of the full-year target.

By Maya Santos

Industrial buildings and roads illustrating a special economic zone
Photo: CNBC Indonesia

Indonesia is evaluating several special economic zones whose development has been slow, Coordinating Minister for Economic Affairs Airlangga Hartarto said on 21 October 2026. He did not identify all the zones under review.

Investment across the zones totalled Rp46 trillion in January–September 2026, reaching 67% of the Rp69.1 trillion annual target. Data presented at the national working meeting and performance evaluation for the zones showed investment was down 9.09% from Rp50.6 trillion in the corresponding period of 2025.

Speaking to reporters at his office, Airlangga said the Lido special economic zone needed further efforts to encourage tourism. His presentation put its potential visitor numbers at 220,000 in 2027. He cited an economic value of Rp352 billion, while the presentation also identified potential foreign-exchange earnings of US$1.8 billion.

Lido’s projected visitor numbers were below those presented for three other special economic zones:

  • Kura Kura Bali: 600,000 potential visitors, with an economic value of Rp600 billion.
  • Mandalika: 1.6 million potential visitors, with tourism and the MotoGP event carrying an economic value of Rp8.6 trillion.
  • Tanjung Lesung: 1.5 million potential visitors, with an economic value of Rp3 trillion.

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