Welcome to Central Java, The Most Accommodative Province for Investors

August 10, 2020

For the past five years, Indonesia government through Investment Coordinating Board (BKPM) has been promoting Central Java as the most promising region for investment. There is no wonder that Central Java industrial estate business has been eyeing to some areas on the province. The head of Investment Coordinating Board, Bahlil Lahadalia, stated that Central Java is the most accommodative province for investors because of its easiness process on doing business, manpower skills, and government innovation (source: Jakarta Post).

Bahlil also noted that the reform done by Central Java government has been the main magnet for business owners to come and set the deals. While other provinces are still having difficulties on regulating business permits and licenses, Central Java government has been formulizing easy licensing regulation and clear guidance on starting business on the region. As a result, there are at least two Central Java Industrial Park(s) which have developed for the past five years: Kendal Industrial Park and Brebes Industrial Estate.

Furthermore, Central Java has enormous number of human resources availability. The province government noted that there have been graduates from 378 colleges/universities and 1,588 vocational schools which are ready to be hired. Based on the data from Central Java provincial government on 2019, there are more than 70,000 people working for the companies established in the province. The new investments in Central Java lowered the unemployment rate that has been an issue for a long time for the productive age generation.

Based on 2019 annual report from One Stop Integrated Service Agency in Central Java, there was almost 50 trillion rupiahs (US$ 3,5 billion) of investment value, achieved by the province. More than half of them came from foreign investment, and there was around 15 trillion rupiahs (US$ 1,05 billion) coming from local investors. Governor of Central Java, Ganjar Pranowo, explained that the innovation on bureaucratic system is the key to attract investors. Not only giving them incentives, but also providing them facilities to be explored by the investors are the main strategy of the province.

Another factor which made the region favorable for investors is tourism package set by the government. Ganjar Pranowo said that he prepared entertainment attraction and cultural tour in industrial park at Java and other historical places in Central Java for the business owners to enjoy the warmth and local tradition of Javanese people. The attractiveness, innovation, adaptive, and humble spirit of the province made Central Java becoming magnet for both foreign and domestic investors. Even so, the province keeps maintaining their achievement and improving the investment growth. It is a clean and clear message by the governor (source: Jakarta Post).