Taipei – The Industropolis Batang Special Economic Zone (SEZ), located in Batang Regency, Central Java, was officially inaugurated by Indonesian President Prabowo Subianto on March 20, 2025. The zone is expected to serve as a key driver of national economic growth and facilitate Indonesia’s economic transition through downstreaming and industrialization efforts.

In his inauguration speech, President Subianto expressed gratitude to all ministries and government institutions involved in overseeing the development of Industropolis Batang, from its initial planning stages to its official launch.

“Today, Indonesia finally has what we hope will become our own version of Shenzhen,” Subianto said.

He emphasized that the SEZ aligns with Indonesia’s national vision to close the development gap with neighboring countries. The presence of a modern industrial zone, he added, is likely to attract significant investment and generate large-scale employment.

“We must be bold in catching up with what our neighboring countries have achieved. We should not hesitate to learn from the experiences of developed nations, as our ultimate goal is to build prosperity for all Indonesians,” the President said.

Subianto also highlighted the importance of collaboration between the government, the private sector, and international partners to support the development of Industropolis Batang. He stated that the zone exemplifies Indonesia’s openness to becoming a global economic partner offering mutual benefits.

“Indonesia needs participation, investment, and meaningful cooperation built on mutual benefit,” he said.

Meanwhile, Ngurah Wirawan, Head of the Development and Management Agency (BUPP) of the zone, said the designation of Batang as a Special Economic Zone (SEZ) would significantly enhance its appeal to investors. The status also enables the area to offer various fiscal incentives and investment facilities, including tax breaks and monetary benefits.

“We are truly grateful for this designation, as it will further accelerate the development of the Batang industrial zone. It makes the area more attractive to both foreign and domestic investors,” Ngurah said. “We expect this to lead to an expansion in factory numbers and economic activity, generating employment and contributing to the economic growth targeted by the government.”

Ngurah expressed optimism that the SEZ would attract up to Rp75 trillion (approximately USD 4.8 billion) in new investments over the next five years.

“Based on our calculations and projections, we expect not only to reach Rp75 trillion in investments within five years but also to create more than 50,000 jobs,” he said.

He added that Industropolis Batang SEZ stands out for its unique structure, comprising three main clusters: an industrial and processing zone, a transportation and logistics hub, and a property and tourism area. These features, he said, make it one of the most comprehensive SEZs in Indonesia.

The zone is also supported by key infrastructure, including direct access to the toll road, a super dry port railway line capable of transporting up to 30 container train sets, and a port currently under construction to ensure smooth logistics and goods distribution.

“We are thankful for the opportunity given by the government to develop such a fully integrated zone. Now that it has been officially launched by the President, we hope it will truly boost investment in Indonesia,” Ngurah said.

The inauguration ceremony was attended by several high-ranking officials, including members of the Merah Putih Cabinet, Head of the National Economic Council Luhut Binsar Pandjaitan, Bank Indonesia Governor Perry Warjiyo, Central Java Governor Ahmad Luthfi, and BUPP Chief Ngurah Wirawan.