The Jakarta Post
A conducive business environment with various incentives offered by Central Java makes the province an attractive destination for investment.
Nationally, realized investment in the third quarter of 2019 reached Rp 205.7 trillion, according to the Investment Coordinating Board (BKPM). Central Java contributed realized investment of Rp 47.24 trillion, higher than the Rp 41.1 trillion contributed by Jakarta province.
Ratna Kawuri, chairwoman of the Central Java One-Stop Integrated Services Agency,
Integrated One-Roof Service and Investment Office, says foreign investment contributed Rp 32.27 trillion to the total value and domestic investment Rp 14.97 trillion.
“The achievement shows that 99.6 percent of the investment target of Rp 47.42 trillion has been realized,” Ratna says.
She says the increasing investment reduced the unemployment rate in Central Java from the first to the third quarter with a total of 71,639 people having been absorbed in a number of companies.
The companies are spread across several areas in Central Java, including Jepara, Batang, Semarang, Brebes, Cilacap, Sukoharjo and Boyolali.
“In the business sector, companies operate mainly in electricity, gas and water. Other businesses are involved in leather goods, textiles, automotive parts, food and property,” she says.
Ratna has expressed optimism about the prospect of investment in the coming years to meet the targeted 7 percent economic growth.
“We are optimistic the expected 7 percent economic growth can be achieved because Central Java has all [supporting factors] – infrastructure, land, skilled labor force and [the government’s] commitment to pro-investment policies. All this gives us confidence the 7 percent target is not difficult to achieve,” she says.
Central Java Governor Ganjar Pranowo has pointed out that his administration is attracting investment in all sectors by providing incentives and facilities, one being in the form of an eased integrated one-stop service.
“I have even arranged tourism packages for prospective investors. We have prepared a culinary tour for them while they look into investment opportunities in Central Java. It must be fun,” he said at the Central Java Investment Business Forum (CJIBF) in Jakarta recently.
He says Central Java has become one of the most attractive places in Indonesia for foreign investors given the positive indicators, which include a conducive investment climate, developed infrastructure and social well-being.
“Central Java people are attractive, humble, smart and adaptive to change. This is one of the factors that makes it a favorable destination for investment,” he says.
Speaking about the labor force, he says Central Java has such big demographic bonuses that investors should not fear a lack in competent human resources with the province being home to 378 colleges and universities as well as 1,588 vocational high schools (SMK).
“Even if Bapak and Ibu wish to request a specific culture [competence] through our educational institutions to meet your business requirements, we can see to it,” he says.