PERAN KAWASAN EKONOMI KHUSUS (KEK) DALAM MENDORONG AGLOMERASI INDUSTRI DI LUAR JAWA

Abstract

The imbalance in Indonesia's economic structure, dominated by Java, has prompted the government to establish a Special Economic Zone (SEZ) policy as an instrument to spur industrialization outside Java. This study aims to analyze the role of SEZs in encouraging the formation of industrial agglomerations outside Java and evaluate the gap between policy expectations and the reality of implementation. This study uses a descriptive qualitative method with a library research approach sourced from secondary data, official agency reports, and related literature. The results show that agglomeration patterns in SEZs outside Java are policy driven and have not formed naturally like in Java. Key findings indicate that fiscal incentives alone are ineffective in compensating for high logistics costs and minimal physical infrastructure. As a result, SEZs outside Java risk becoming closed areas (enclaves) or "cathedrals in the desert" with minimal connectivity to the local economy, thus triggering value-added leakage and failing to create an inclusive multiplier effect for surrounding communities.