The government continues to strengthen the role of Special Economic Zones (KEK) as engines of local economic growth, with their economic effects gradually becoming apparent. The Coordinating Minister for Economic Affairs stated that regions with well-managed KEKs have shown outstanding economic performance, such as Batang Regency and Kendal Regency, which achieved economic growth rates of 8.52% and 8.84% (year-on-year) respectively in the third quarter of 2025, far exceeding provincial and national averages.
The KEK Industrial City in Batang Regency has driven accelerated investment, employment growth, and improved livelihoods. In 2024, the regency's economy grew by 6.03%, jumping to 8.52% in the third quarter of 2025, mainly driven by household consumption and investment. Academic research shows that Batang KEK has a significant multiplier effect on the local economy, leading to increased employment opportunities and reduced unemployment and poverty rates.
The poverty rate in 2025 dropped to 7.79% from 8.73% in 2024. Additionally, new investment inflows, technology adoption, and the development of high-value-added processing industries have improved production efficiency and per capita output, enhancing local economic competitiveness. Kendal Regency also performed strongly, achieving 8.84% economic growth in the third quarter of 2025, ranking first in Central Java Province, benefiting from industrial activities in the industrial zone and KEK.
He pointed out that the experiences of Batang and Kendal show that KEKs not only incentivize investment but also act as catalysts for local economic transformation, and their successful models can serve as references for other regions, especially non-metropolitan areas. In the future, the Coordinating Ministry for Economic Affairs will coordinate cross-sectoral and local government policies, through strengthening connectivity, ensuring policy certainty, cultivating human resources, and linking MSMEs with the local economy, to ensure that KEKs fully play their role as key tools for accelerating investment, creating jobs, and promoting balanced national economic development.
The government continues to strengthen the role of Special Economic Zones (KEK) as engines of local economic growth, with their economic effects gradually becoming apparent. The Coordinating Minister for Economic Affairs stated that regions with well-managed KEKs have shown outstanding economic performance, such as Batang Regency and Kendal Regency, which achieved economic growth rates of 8.52% and 8.84% (year-on-year) respectively in the third quarter of 2025, far exceeding provincial and national averages.
The KEK Industrial City in Batang Regency has driven accelerated investment, employment growth, and improved livelihoods. In 2024, the regency's economy grew by 6.03%, jumping to 8.52% in the third quarter of 2025, mainly driven by household consumption and investment. Academic research shows that Batang KEK has a significant multiplier effect on the local economy, leading to increased employment opportunities and reduced unemployment and poverty rates.
The poverty rate in 2025 dropped to 7.79% from 8.73% in 2024. Additionally, new investment inflows, technology adoption, and the development of high-value-added processing industries have improved production efficiency and per capita output, enhancing local economic competitiveness. Kendal Regency also performed strongly, achieving 8.84% economic growth in the third quarter of 2025, ranking first in Central Java Province, benefiting from industrial activities in the industrial zone and KEK.
He pointed out that the experiences of Batang and Kendal show that KEKs not only incentivize investment but also act as catalysts for local economic transformation, and their successful models can serve as references for other regions, especially non-metropolitan areas. In the future, the Coordinating Ministry for Economic Affairs will coordinate cross-sectoral and local government policies, through strengthening connectivity, ensuring policy certainty, cultivating human resources, and linking MSMEs with the local economy, to ensure that KEKs fully play their role as key tools for accelerating investment, creating jobs, and promoting balanced national economic development.