Through Expansion, Kendal SEZ Strengthens Strategic Collaboration Between Indonesia and Singapore

May 18, 2026

Kendal Special Economic Zone (SEZ) is increasingly playing a key role as one of Indonesia’s most dynamic industrial growth hubs, while also serving as a symbol of the successful strategic collaboration between Indonesia and Singapore. As the zone continues to grow, it is increasing its industrial land capacity and strengthening its contribution to regional and national economic growth.

 

During a bilateral meeting between Singaporean Minister Vivian Balakrishnan and Indonesian Foreign Minister Sugiono, it was noted that the economic partnership established through the development of Kendal SEZ serves as a concrete example of mutually beneficial cooperation. The Indonesian government stated that this collaboration has opened up new investment opportunities, accelerated regional industrialization, and created jobs. Meanwhile, the Singaporean government emphasized that Kendal SEZ serves as a model of success for the development of integrated industrial zones in Indonesia, capable of providing certainty, efficiency, and competitiveness for global investors.

 

Data indicates that Central Java’s economy continues to grow. Investment in the first quarter of 2026 reached Rp 23.02 trillion, which is a 5.35 percent increase from the same period last year. There has been a consistent upward trend since 2021. Kendal Regency was one of the largest contributors to this achievement, with Rp 3.61 trillion in investment realization in the first quarter of 2026. In fact, Kendal was recorded as the region with the highest investment realization in Central Java in 2024.


As of the first quarter of 2026, Kendal SEZ has attracted 139 businesses with total investment commitments reaching Rp 189.16 trillion and creating approximately 42,000 jobs. The growing industrial sectors are quite diverse, ranging from the automotive, renewable energy, electronics, pharmaceutical and medical device, fashion, furniture, and food and beverage industries to other supporting industrial sectors.

 

To date, the number of businesses continues to grow, and demand for industrial land in Kendal SEZ continues to rise. In response to this high level of interest, the expansion of Kendal SEZ is aimed at strengthening the integrated industrial ecosystem, including improvements to infrastructure, logistics facilities, and area utilities, as well as more efficient licensing support services.

 

Juliani Kusumaningrum, Executive Director of Kendal SEZ, stated that the success of this zone is inseparable from the close synergy between the central government, local government, and strategic partners from Singapore. “Kendal Special Economic Zone was established with a long-term vision to become a hub for modern industrial growth that is globally competitive. We see investor confidence continuing to rise, and it is our responsibility to maintain the quality of the zone, strengthen the industrial ecosystem, and ensure that investment growth goes hand in hand with job creation and economic benefits for the community,” she said.

 

Juliani added that Kendal SEZ serves not only as an industrial zone but also as a driver of regional economic transformation. With consistent policy support and strong international collaboration, Kendal SEZ is confident it can continue to strengthen its position as the industrial hub of Kendal Regency and one of the engines of economic growth in Central Java.