This study looks at all necessary aspects under Indonesia’s program in the development of several Special Economic Zones (SEZs) and offers some policy recommendations for better development of SEZs in Indonesia in order to increase Foreign Direct Investment, competitive exports, and to reduce economic inequality in the country.

More specifically the study carefully examines several issues and challenges in aspects, that include among others: the coherence of regulatory framework related to the development of SEZs, the institutional setup (both at the regional and national level) in managing the zones, feasibility of SEZ-designated regions to carry out the development plan, fiscal and non-fiscal incentives to attract investment into SEZ, and efforts to build infrastructure within SEZs. In addition, this study also provides some lessons from Indonesia's past initiatives in developing strategic zones and also from similar experiences in other countries. The policy recommendations offered at the end of this study are expected to assist policymakers to accelerate the development of SEZs in Indonesia.

The report of this study is delivered in Indonesian, but soon the English version is also going to be published.