Indonesia’s Special Economic Zones (SEZs or KEK) are proving to be powerful engines of regional growth, with the districts of Batang and Kendal in Central Java recording phenomenal economic expansion. Co-ordinating Minister for Economic Affairs, Airlangga Hartarto, noted that both districts have achieved economic growth rates of up to 8%, significantly surpassing national and provincial averages. In the third quarter of 2025, Batang's economy surged by 8.52% year-on-year, while Kendal's recorded an even higher growth of 8.84%. This success confirms that well-designed SEZs—supported by infrastructure, business facilitation, and strategic integration with local labor—are effective catalysts for regional economic transformation, not merely investment incentives.

The economic acceleration in these SEZ-anchored regions demonstrates a strong multiplier effect, translating into tangible socio-economic benefits. For instance, the increased economic activity and job creation in Batang contributed to a significant decline in the poverty rate, which dropped from 8.73% in 2024 to 7.79% in 2025. Furthermore, the influx of new investment and technology adoption within the KEKs enhances regional economic productivity and competitiveness through higher value-added processing industries. The government now views the remarkable performance of Batang and Kendal as a compelling model for future SEZ development across the nation, establishing new, sustainable growth centers outside major metropolitan areas.
 
Source: https://www.antaranews.com/berita/5304610/kek-dongkrak-pertumbuhan-ekonomi-batang-dan-kendal-hingga-8-persen