Law No. 39 of 2009 on Special Economic Zones (KEK)
Undang-Undang Nomor 39 Tahun 2009 tentang Kawasan Ekonomi Khusus
What this regulation does
Plain-English summary of the regulation's substance and how it affects PT PMA operations.
UU 39/2009 is the foundational statute for Indonesia's Special Economic Zones (KEK / Kawasan Ekonomi Khusus). It defines the legal framework for designation, governance, and incentives, with implementing details set out in PP 12/2020. KEKs are zones designated by Presidential decree to develop strategic industries — currently 22 active zones across tourism (Mandalika, Tanjung Lesung, Likupang), downstream metals (Sei Mangkei palm oil, Galang Batang alumina), manufacturing (Kendal, Bitung, Tanjung Api-Api), digital (Nongsa Batam, Singhasari), and others. Each KEK is operated by a designated National Council and a zone Administrator (BPKEK), the latter empowered to issue most operational licenses within the zone — replacing the multi-ministry licensing patchwork that otherwise applies. UU 39/2009 has been amended by UU 11/2020 (Cipta Kerja) to align KEK governance with OSS-RBA. Cited on Kickrate's customs-document KEK pages and on KBLI Directory's investment-incentives content.
Key provisions
The articles and operational points most commonly referenced in practice.
- 01
Designation by Presidential decree
KEKs are formally designated through Presidential regulation, each with a defined geographic boundary, focus industries, and term.
- 02
BPKEK administrators
Each KEK has a zone-level Administrator (Badan Pengusahaan KEK) acting as a one-stop service for licensing within the zone.
- 03
Strategic industry focus
22 active KEKs across tourism, downstream metals, manufacturing, digital, and aerospace — each with a designated industry mix.
- 04
Cipta Kerja alignment
Amended by UU 11/2020 to integrate KEK administration into the OSS-RBA framework.
Official text
For compliance and dispute work, cite the original Indonesian text directly.
Undang-Undang Nomor 39 Tahun 2009 tentang Kawasan Ekonomi Khusus
tentang Kawasan Ekonomi Khusus
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