Indonesia to Launch India-Focused SEZ Near Jakarta to Boost FDI

21 Jan 2025 CW Team

Indonesia is preparing to join a select group of nations by establishing a dedicated India-specific special economic zone (SEZ) designed to attract Indian investments in industries such as automotive, electronics, movie production, pharmaceuticals, healthcare, and education.

The SEZ, located just 45 minutes from Jakarta in the Jababeka Industrial Estate, will offer customized facilities and regulatory certainty to encourage Indian investors to support Indonesia's creative economy. Jababeka Group founder Setyono Djuandi (SD) Darmono emphasized the SEZ’s strategic benefits, including its predictable regulatory environment and proximity to Jakarta, making it an attractive option for Indian companies.

Darmono expressed his intention to replicate Singapore's success as a business hub, aiming for a similar model in Jababeka. He mentioned that the SEZ, with its complete infrastructure, is ready to become a strategic partner for Indian investors looking to enter the Indonesian market. He also pointed out that the Jababeka Industrial Estate is well-suited for high-tech industries, with many tenants already operating in the automotive, electronics, and pharmaceutical sectors.

Darmono recently met with Indian Ambassador to Indonesia, Sandeep Chakraborty, to discuss the potential of the India-specific SEZ. Chakraborty expressed optimism about attracting Indian investors and business partners to Indonesia and did not rule out the possibility of collaboration with Jababeka.

This development comes ahead of Indonesian President Prabowo Subianto’s visit to New Delhi next week for the Republic Day parade.

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