The three regions are in North Sumatra, South Sulawesi and Banten provinces.

According to the Investment Coordinating Board (BKPM), at least 14 regions, including Bali, Makassar, East Java, and North Sulawesi's Bitung island, had been proposed as SEZ, but only Batam, Bintan and Karimun met the minimum standards.

Bojonegara in Banten province, located on the western tip of Java, is the location with most potential for investment as the government plans to build an international port worth 7 trillion rupiah (768 million US dollars), reported major national newspaper The Jakarta Post, quoting BKPM head Muhammad Luthfi as saying.

With regards to North Sulawesi, he said the province already had the biggest port in Sulawesi and was the center of prime export commodities, including fish, shrimp, cocoa and nutmeg.

Luthfi said that North Sumatra had the same potential as its neighboring Penang, an economic zone in Malaysia, which has begun to lose its allure.

Luthfi refused to specify which parts of North Sumatra and South Sulawesi would be turned in SEZs, saying the official announcement of the new SEZs would be made after Coordinating Minister for the Economy Boediono holds a meeting to discuss the draft law to support the operation of SEZs in the country.