DEN prioritizes establishment of Lake Toba SEZ

The National Economic Council (DEN) has prioritized the establishment of the Lake Toba Special Economic Zone (SEZ). This plan is being implemented in collaboration with the seven regional governments surrounding the Lake Toba area.

"Each region in the Lake Toba area has different characteristics and potential," said DEN Chairman Gen. (ret.) Luhut Binsar Pandjaitan in a written statement in Medan on July 13, 2025, as reported by Antara.

The Lake Toba area covers 1,145 square kilometers (km²) surrounded by seven regencies of North Sumatra Province, namely Simalungun, Samosir, Toba, Humbang Hasundutan, North Tapanuli, Karo, and Dairi. 

Luhut explained that the establishment of the SEZ takes into account two main factors. First, the characteristics and potential of each region. Second, the proposed business plans submitted by the regional governments.

DEN is promoting the Lake Toba SEZ as a step to increase investment as well as optimize exports and imports. The area's transformation into an SEZ is also expected to accelerate development in the seven regencies surrounding it.

"There are several business activities [that would be focused on by] the SEZ, including tourism, sports, agriculture, energy, education, and health. The regional governments are assessing which business plans are appropriate for their [respective] regions," Luhut said.

Luhut said the central government will provide support in the form of infrastructure, institutions, business entities, and evaluation systems.

"Let's support this together. Everyone works hard together to make this happen. When it is realized, the results will be felt by our people; more job opportunities, increased investment, and a stronger economy," Luhut said.

North Sumatra Province Regional Secretary Togap Simangunsong expressed the North Sumatra Provincial Government's readiness to be a catalyst for the transformation of Lake Toba into a tourism- and agriculture-based SEZ.

"The development of the Lake Toba area is not just about physical development or a tourist destination, but also the responsibility to preserve natural and cultural heritage while improving the welfare of the people of North Sumatra, especially those living around Lake Toba," he said.

The North Sumatra Provincial Government is currently preparing the administrative requirements for the Lake Toba SEZ, including the area's land and supporting documents. The proposal to establish the SEZ is worked on by the province alongside DEN and the seven regencies, and it will be submitted to the National SEZ Council.

"We are collaborating to make this happen. However, we need to understand each person's role so that the establishment of this SEZ runs smoothly, as the Lake Toba SEZ has a significant impact on our community and development," Togap said.