July 08, 2026
One
of the outcomes announced at the Leaders’ Retreat between Indonesian President
Prabowo Subianto and Singaporean Prime Minister Lawrence Wong was the expansion
of Kendal SEZ by 1,000 hectares. This agreement is part of the two countries’
commitment to strengthening their strategic cooperation in various fields,
including investment and economic development.
During
a joint press conference, Singaporean Prime Minister Lawrence Wong highlighted
the Kendal Special Economic Zone (SEZ) as a success story of economic
cooperation between Indonesia and Singapore, which is celebrating its first
decade this year.
“Kendal
SEZ will celebrate its 10th anniversary this year and is one of the success
stories of cooperation between Indonesia and Singapore. The park has reached
full capacity and will be expanded by another 1,000 hectares. This expansion
will attract more investment, create jobs, and support Indonesia’s economic
growth and development by boosting trade and investment between the two
countries,” said Lawrence Wong.
Lawrence
Wong reaffirmed the commitment of Indonesia and Singapore to strengthening
supply chain resilience and exploring new opportunities for cooperation. This
will allow both countries, as well as the ASEAN region, to become more
resilient and competitive in the face of global economic dynamics.
This 1,000-hectare expansion is the next phase in the
development of Kendal SEZ, which has already successfully developed its first
1,000 hectares with a high occupancy rate. With this expansion, the total area
of the park will reach 2,000 hectares. This expansion is certainly a strategic
move, given the park’s high occupancy rate and the continued positive trend in
investor enthusiasm.
Kendal SEZ is a joint venture between PT Jababeka Tbk and Sembcorp
Development Ltd. The park began operations in 2016 as part of a strategic
collaboration between Indonesia and Singapore to develop industrial parks.
Since receiving its Special Economic Zone (SEZ) designation in 2019, Kendal SEZ
has continued to grow by offering investors and business operators various
investment facilities and incentives.
To date, Kendal SEZ has attracted more than 140 companies from various
industrial sectors, employing over 40,000 people. Over the course of nearly a
decade of development, KIK has demonstrated consistent positive investment
growth, strengthening its position as one of Indonesia’s leading destinations
for manufacturing investment, both domestic and multinational.
Including the
expansion of the Kendal SEZ as an outcome of the Indonesia–Singapore Leaders’
Retreat highlights the importance of this zone in strengthening economic
cooperation between the two countries. According to Juliani Kusumaningrum, the
Executive Director of the Kendal SEZ, the commitment made by the Indonesian and
Singaporean governments will provide positive momentum for the future
development of the Kendal Special Economic Zone.
"The expansion of
this area is certainly an important step toward addressing the high demand for
industrial land amid growing investment interest in the Kendal SEZ. This
development is also expected to strengthen the park’s position as an integrated
industrial park that contributes to national industrial growth and strengthens
economic ties between Indonesia and Singapore,” said Juliani.