Government backs Gresik special economic zone expansion

By Romel S. Gurky

The government is supporting plans to expand the Gresik Special Economic Zone (SEZ) in East Java to accommodate growing investor demand and strengthen the area's industrial and port ecosystem, officials said following a coordination meeting on the project.

The expansion proposal was discussed during a meeting on June 12 involving officials from the Coordinating Ministry for Economic Affairs, the Ministry of Investment and Downstream Industry, the Ministry of Agrarian Affairs and Spatial Planning, the East Java provincial government, and the zone's developer and operator, PT Berkah Kawasan Manyar Sejahtera (BKMS).

The discussions focused on securing spatial planning approvals and meeting technical requirements needed for the proposed expansion, according to a government statement.

Susiwijono Moegiarso, secretary of the Coordinating Ministry for Economic Affairs and secretary of the National Council for Special Economic Zones, said the government fully supports the expansion to facilitate new investment and job creation.

"The government fully supports the expansion of Gresik SEZ so that existing investment opportunities and potential can be promptly realized and converted into economic activities and employment opportunities," Susiwijono said.

The government has been seeking to attract investment into its special economic zones as part of efforts to boost industrialization and downstream processing while supporting economic growth.

Since being designated an SEZ under Government Regulation No. 71 of 2021, Gresik SEZ has attracted cumulative investment of Rp 113.4 trillion ($6.9 billion) as of the first quarter of 2026, according to government data. Investment since the zone's establishment has reached Rp 108.2 trillion, while the area has created 45,860 jobs.

The government said the proposed expansion would help accommodate further investment, strengthen the integrated industrial and port complex, and support the development of green energy-related industries.

Officials from the Ministry of Agrarian Affairs and Spatial Planning presented options for meeting spatial utilization requirements for the expansion area. The government said ministries and agencies would continue coordinating to identify the most effective mechanism for accelerating the approval process while complying with existing regulations.

Authorities said they would continue coordinating across ministries, agencies and local governments to align planning, spatial management and licensing procedures to facilitate the expansion.

Editing by Reiner Simanjuntak