Indonesia is trailing its ASEAN peers in the development of Special Economic Zones (SEZs), with Chief Economic Affairs Minister Airlangga Hartarto acknowledging that the limited size and reach of the country’s SEZs are hampering efforts to improve investment efficiency and reduce high logistics costs. Indonesia currently operates 24 SEZs covering just 21,000 hectares—dwarfed by Vietnam’s 1.6 million hectares across four zones, Malaysia’s 2.15 million hectares in six, and Thailand’s 622,000 hectares in ten—hindering investment efficiency and keeping logistics costs high, according to Chief Economic Affairs Minister Airlangga Hartarto. He noted that Indonesia’s Incremental Capital Output Ratio (ICOR) remains inefficient at 6 partly due to these constraints, with logistics expenses accounting for about 12 percent of GDP. To drive down logistics costs to 8 percent of GDP—an ambition that may not be met until 2035 under current regulations—the government plans to deregulate the sector and accelerate SEZ expansion. By channeling more investment into SEZ-based logistics infrastructure and streamlining planning, Indonesia aims to improve its cost structure, boost competitiveness, and shorten the time needed to achieve efficiency gains.Source: https://jakartaglobe.id/business/indonesia-lags-behind-asean-neighbors-in-sez-coverage-eyes-logistic-cost-reform (ICE GIACARTA)

Fonte notizia: Jakarta Globe, 29 July 2025