Indonesia plans India-specific SEZ near Jakarta to attract FDI

Indonesia is poised to join a select group of nations establishing a dedicated India-specific special economic zone (SEZ) aimed at attracting Indian investments in sectors such as automotive, electronics, movie production, pharmaceuticals, healthcare, and education.

Located just 45 minutes from Jakarta, the SEZ in Jababeka Industrial Estate will feature tailored facilities and regulatory certainty to entice Indian investors to contribute to Indonesia's creative economy, Jababeka Group founder Setyono Djuandi (SD) Darmono told ET in an interview.

He highlighted the SEZ's strategic advantages, including its predictable regulatory environment and proximity to Jakarta, as compelling reasons for Indian companies to consider the opportunity.



Drawing parallels to Singapore's success as a business hub, Darmono said he wants to replicate a similar model in Jababeka.

He said the SEZ, with complete facilities and infrastructure, is ready to become a strategic partner for Indian investors who want to enter the Indonesian market. "The Jababeka Industrial Estate is very suitable for the high-tech industry. We already have many tenants in the automotive, electronics, and pharmaceutical sectors," he noted.

Darmono recently met Indian envoy to Indonesia Sandeep Chakraborty to discuss the potential of an India-specific SEZ here.


Chakravorty told ET that he is optimistic that he can attract investors and business partners from India to Indonesia and does not rule out the possibility of collaborating with Jababeka.

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