Special Economic Zone (SEZ) Development Policy Strategy in Attracting Foreign Investment

Special Economic Zones (SEZs) are area-based policy instruments to strengthen the attractiveness of foreign investment, but the success of a region is not determined by incentives alone. This article analyzes public policy strategies in SEZ development through a literature review and normative analysis of Indonesian regulations. The discussion focuses on priority sector selection, infrastructure readiness, investment facilitation, data-driven promotion, local business linkages, and legal certainty and accountability of incentives. The study shows that investment attraction is more sustainable when fiscal facilities complement basic competitive conditions, such as connectivity, skills availability, institutional quality, licensing consistency, and market access. The main regulations analyzed include Law No. 39 of 2009 concerning SEZs, Law No. 25 of 2007 concerning Investment, Law No. 6 of 2023, Government Regulation No. 40 of 2021, Government Regulation No. 28 of 2025, and provisions on tax and customs facilities. The article recommends a sectoral roadmap, integrated services, results-based incentives, strengthening local suppliers, and a performance dashboard that distinguishes commitment from investment realization. Measurement of economic, social, fiscal, and environmental impacts needs to be implemented periodically so that SEZs do not develop as enclaves, but rather as drivers of productivity and inclusive regional development.