INDONESIA'S INDUSTRIAL GROWTH STARTS IN CENTRAL JAVA

Central Java is emerging as a key manufacturing and investment hub in Indonesia, supported by an established industrial base, a growing network of industrial estates, and strategic connectivity across Java. Its location along the Trans-Java Toll Road provides access to major domestic markets, industrial centres, and regional logistics networks, creating opportunities for businesses to establish and expand their operations.

From January to September 2026, the province recorded IDR 72.54 trillion in investment, an increase of 9.7% year-on-year. Foreign direct investment (FDI) contributed IDR 40.77 trillion, or 56.2% of the total, while domestic direct investment (DDI) reached IDR 31.77 trillion. Manufacturing remains a key driver of investment, led by rubber and plastics (IDR 8.96 trillion), leather goods and footwear (IDR 7.57 trillion), and textiles (IDR 6.53 trillion).

The province’s manufacturing strength is also reflected in employment. From January to September 2026, the leather goods and footwear industry absorbed 77,330 workers, while the textile industry absorbed another 69,422, bringing their combined employment absorption to 146,752 workers. This highlights Central Java’s established workforce base in key manufacturing industries.

Within this growing industrial landscape, Kendal Regency ranked first in Central Java for total investment realization, recording IDR 13.61 trillion from January to September 2026. Comprising IDR 11.65 trillion in FDI and IDR 1.96 trillion in DDI, this achievement reflects Kendal’s growing role in the province’s investment landscape. With access to the Trans-Java Toll Road and proximity to Semarang, Kendal is strategically positioned within Central Java’s expanding industrial and logistics network.