Green Special Economic Zones (SEZs): Can Indonesia Promote Sustainable Growth Through SEZs?

Abstract

Since the introduction of the United Nations Sustainable Development Goals in 2016, global economies have established targets to mitigate the environmental costs of development. Yet, given the conflict between environmental preservation and industrial expansion, a blueprint for sustainable economic growth is in dire need. This is especially so in emerging markets like Indonesia, where the economy is catching up with more established counterparts. Indonesia has created SEZs (Special Economic Zones) for foreign companies to invest in. However, given the Indonesian economy’s intense concentration of resource-intensive industries, ‘green’ SEZ growth may be far-fetched. By analysing Indonesia’s SEZ strategy, this case study discusses how to ensure environmental protection despite its vast regulatory challenges.