Javanese Working Behavior Becomes Magnet for New Investments in Central Java

August 10, 2020

As a province with more than half Java island population living here, Central Java becomes promising region in terms of the human resources optimization. Out of almost 35 million people living in the province, more than 50% of them are on productive ages. This is seen as demographic bonus for business owners especially those who want to invest on Central Java industrial estate. Compared to other big province in Java like Jakarta and West Java, Central Java also offers workers with strong working behavior. One of the business owners, Philip D Kaligis from PT Anugrah Cipta Mould said that more factories employ Javanese people due to their way of work and better communication with the business owner (source: Jakarta Post).

With the demographic advantage, Governor of Central Java, Ganjar Pranowo, is now improving the vocational education system in Central Java by giving the schools more facilities and more working trainings as a preparation for graduates entering job markets. In addition, he also regulates the price for labor in Central Java. Based the data from Central Statistics Agency, The monthly wage in Central Java for 2020 is around 1,8 – 2,7 million rupiahs (US$127 – US$191), a big difference compared to some of the busiest regions in Java Island; Jakarta: 4,2 million rupiahs (US$297), West Java: 1,8 - 4,5 million rupiahs (US$127 – US$300), East Java (1,7-4,5) 125-300, and Banten (2,4-4,1) 170-290. This is the main reason of many companies moved their factories to Central Java.

Based on the data from Central Java’s Manpower, Transmigration and Population Agency, more than 300,000 workers are employed from the FDI (Foreign Direct Investment) in 2019. In addition, domestic investments also provide around 7,000 projects for more than 200,000 workers. Total investment of both sectors are 211.19 billion rupiahs (US$ 15 million). With the development of Central Java industrial park in regions like Kendal and Brebes, it is expected that in 2021, there are more than 10,000 projects provided for Javanese workers.

Kendal Industrial Park, for example, as the new special economic zone in Java, it promises to provide at least 500,000 new workers to help the manufacturers in the total area of 2,700 hectares. With the plan of finishing first development phase in 2021, Kendal Industrial Park has attracted at least 58 tenants, locals and foreigners. The investors believe that the human resources advantage owned by Central Java province and the hard working culture among Javanese will help their businesses to grow faster; then boost the local and regional economic condition in the future (source: Bisnis Indonesia).