Airlangga: Economic Zones Boost Growth in Batang and Kendal

Coordinating Minister for Economic Affairs Airlangga Hartarto said on 14 December 2025 that Special Economic Zones (SEZ) can boost regional productivity and economic growth. He cited Batang and Kendal regencies, which recorded strong growth after SEZ implementation. The remarks were made at a press conference in Jakarta.

An SEZ is a designated area that offers investment incentives, dedicated infrastructure, and streamlined business procedures. In Batang, economic growth rose from 6.03 % in 2024 to 8.52 % in the third quarter of 2025, while the poverty rate fell from 8.73 % to 7.79 % over the same period. Kendal achieved an 8.84 % year‑on‑year growth in Q3 2025, driven by industrial activity and SEZ‑linked investment.

Airlangga emphasized that Batang and Kendal’s experience could serve as a model for other regions, provided regulations are certain, the workforce is prepared, and SEZs are linked with local MSMEs. He added that cross‑ministerial and local coordination is essential for SEZs to function as catalysts for investment, job creation, and balanced national development.