2025
Does a special economic zone impact the surrounding economy? The case study of Kendal, Indonesia
WISNU WARDHANA, Irwanda; Indri RIESFANDIARI; Erizal JAMAL; Vyta W. HANIFAH; Pihri PIHRI et al.Basic information
Original name
Does a special economic zone impact the surrounding economy? The case study of Kendal, Indonesia
Authors
WISNU WARDHANA, Irwanda; Indri RIESFANDIARI; Erizal JAMAL; Vyta W. HANIFAH; Pihri PIHRI; Felix WISNU HANDOYO; Nugroho PURWONO; Rizky PRAYOGO RAMADHAN; Budhi SETYAWAN; Michal PLAČEK; Bakri PRAKARSO A. W; Natasha DINI CHRYSANTI; Reza MAHDI DANISWARA; Bambang WIJANARKO and Elen SETIADI
Edition
Humanities and Social Sciences Communications, 2025, 2662-9992
Other information
Language
English
Type of outcome
Article in a journal
Field of Study
50204 Business and management
Country of publisher
United Kingdom of Great Britain and Northern Ireland
Confidentiality degree
is not subject to a state or trade secret
References:
Impact factor
Impact factor: 3.600 in 2024
Marked to be transferred to RIV
Yes
Organization unit
Ambis University
UT WoS
Keywords in English
Growth;Special Economic Zones;Kendal SEZ;Local Economic Development
Tags
Changed: 9/3/2026 10:33, Bc. Olga Puldová
Abstract
In the original language
Special Economic Zones (SEZs) have become pivotal instruments for fostering regional development and industrial growth worldwide, yet comprehensive socioeconomic and spatial impacts remain crucial for understanding their true potential. This study aimed to evaluate the impact and identify the challenges of the SEZ in Indonesia, namely Kendal SEZ, by employing a mixed-methods approach to better capture the nuances of the SEZ’s impacts on the surrounding economy. A qualitative analysis was conducted as an exploratory phase involving SEZ management, enterprises, and government representatives. The quantitative analysis used Propensity Score Matching-Difference in Difference (PSM-DiD) and Geospatial Methods. Findings reveal a positive impact on increasing total household expenditures, reflecting enhanced community well-being. This SEZ strengthened the manufacturing sector, as evidenced by the increased location quotient. Spatial analysis reveals heightened economic activity via Night-Time Light emissions. The Kendal SEZ emerged as a driver of local economic growth and advanced industrial development among Indonesia’s SEZ models despite challenges like infrastructure and technical limitations. Our study contributes robust empirical evidence of the direct and indirect impacts of SEZs on regional economic development. We suggest that future policy considerations should address infrastructure and workforce challenges to sustain and enhance the benefits of SEZ.